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Shanghai Copper Falls From Eight-Month High on Rising Imports

[Al] CBI Morning Review - 2009/6/11 Aluminum Market

SHANGHAI, June 11 -- Copper futures fell from an eight- month high in Shanghai on speculation record imports may be adding to stockpiles faster than the recovery in metals demand.
&nbsp;&nbsp;&nbsp; Copper imports by China, the world's largest consumer, climbed to a record 422,666 metric tons last month, the nation's customs office said in preliminary trade data today. A decline to more than 300,000 tons had been expected, according to Minmetals Starfutures Co.
&nbsp;&nbsp;&nbsp; &quot;Indicators from China's spot market show demand is obviously lagging behind the surge in supplies, so we now have Shanghai copper performing noticeably weaker than London,&quot; Chen Yisheng, a Minmetals Starfutures analyst, said from Shenzhen today.
&nbsp;&nbsp;&nbsp; September-delivery copper on the Shanghai Futures Exchange fell as much as 0.8 percent to 41,400 yuan ($6,058) a metric ton, and traded at 41,680 yuan at 11:15 a.m. local time.
&nbsp;&nbsp;&nbsp; Shanghai copper jumped to the highest since October yesterday, tracking higher London prices. The spot price discount to futures widened to 150 yuan a ton yesterday, according to HNA Topwin Futures Co.
&nbsp;&nbsp;&nbsp; China has boosted imports of the metal used in plumbing and electrical cable as the government ramps up the country's 4 trillion yuan ($586 billion) stimulus program to counter the impact of the global recession.
&nbsp;&nbsp;&nbsp; Inbound shipments advanced 7 percent to 399,833 metric tons in April, the Beijing-based customs office said May 12. Shanghai stockpiles jumped 51 percent to 45,480 tons last week, the biggest increase in two years.
&nbsp;&nbsp;&nbsp; Three-month copper on the London Metal Exchange rose as much as 0.6 percent to $5,201 a ton and last traded at $5,186 a ton. Copper for July delivery in New York fell 0.3 percent to $2.36 a pound.
&nbsp;&nbsp;&nbsp; (Source: Bloomberg)
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