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International copper prices fell to reduce speculative bulls

2016-12-06

On Thursday (December 1st) international copper prices fell, due to the sustainability of the United States after the election challenge, speculators began to reduce positions.

Data show that three month copper fell 0.6%, to $5791 a tonne, not far from the previous trading day hit a one week low.

But Shanghai's Copper rose by nearly 2%, thanks to a rebound in oil prices, and China's announcement of a modest expansion in factory activity in November and a sign of rising inflationary pressures.

Shanghai Futures Exchange copper rose to 47570 yuan per ton ($6900), fell 3.6% on Wednesday.

Citigroup strategist DavidWilson said, "Chinese in terms of economic growth, basically better than many people expected, but Chinese speculative buying massive may start to fade, will hit the price of copper is a reasonable range of $5000-5500, now seems a little too high."

Copper hit the highest $6045.50 since June last Monday.

Copper prices rose 20% in November, the largest monthly increase since April 2006, by the U.S. President elect Trump may implement a massive fiscal stimulus plan, thereby increasing inflation expectations.

Zinc rose 0.9%, to $2728 a tonne; lead fell 2.2% to $2314. Two kinds of metals from the earlier this week hit a multi-year high drop.

China Shanghai Futures Exchange said that since Wednesday evening continuous trading period, the largest number in the zinc ZN1701 contract and ZN1702 contract days opening transaction of non Futures Company members or clients were 1500, the maximum number of lead in PB1701 contract and PB1702 contract days open transactions are 1000 hand. The move is aimed at curbing speculation on two metals.