Reply #21: Shanghai copper down 4.2 pct on LME decline [View All]

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070119:MTFH22804_2007-01-19_07-47-48_SP194814&type=comktNews&rpc=44

SHANGHAI, Jan 19 (Reuters) - Shanghai copper futures fell 4.2 percent on Friday after weak oil prices knocked London futures sharply lower.

The most active March contract <SCFH7> lost 2,220 yuan to 51,330 yuan a tonne by the close and was 3.2 percent down from Thursday's settlement price.

"There is a lot of volatility but very little direction," one trader said.

"I don't think demand in China is as strong as many people think and it won't pick up until after the (Lunar) New Year."

He said Chinese consumers were very price sensitive and while they may buy when prices dip to lower levels, they withdraw from the market and look for substitutes if the market rallies.

Spot copper prices in Shanghai were down 850 yuan, quoted between 54,450 yuan and 54,700 yuan.

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