Copper futures drop due to low demand, Greece

Copper futures in Shanghai edged lower on the final trading day before the start of the weeklong Spring Festival holidays.

The most-traded copper contract for April on the Shanghai Futures Exchange (SHFE) closed at 42,200 yuan ($6739.34) per ton on February 17, down 20 yuan from the previous session.

Volume dropped by 85,120 lots on February 17 from the previous trading day's 239,460.

Chinese copper markets were closed from February 18 until Tuesday for the traditional Chinese New Year holidays.

Some analysts said they are pessimistic due to fragile demand and ample supply.

"We don't see a lot turning around significantly after the Chinese New Year," according to a Reuters report on February 17, citing James Glenn, an analyst from National Australia Bank at Melbourne.

But some remain upbeat. "We are quite positive on the outlook for copper prices. It will be those first few weeks after the [Spring Festival holidays] when we hope to see demand pick up," according to a Reuters report on

Saturday, citing Caroline Bain, senior commodities economist at Capital Economics.

Meanwhile, copper and other base metals were weaker Tuesday due to concerns following a breakdown in debt talks between Greece and other European countries.

"The political crisis in Greece continues to be a drag on industrial metals … However other base metals were weaker as investors continued to fret about the implications of a collapse in Greece bailout talks," according to a statement sent to the Global Times on February 17 by the Australia and New Zealand Banking Group.