RTRS:METALS-Shanghai copper falls 1 pct after rallying on US data
* Shanghai copper snaps four sessions of gains
* U.S. copper speculators increase net shorts - CFTC
* Range-trade may persist as market awaits policy shift
(Adds comments, details; updates prices)
By Rujun Shen
SINGAPORE, Dec 26 (Reuters) - Shanghai copper fell
more than 1 percent on Monday, after rising nearly 3 percent in
the previous week on a raft of upbeat U.S. economic data, as
concerns about the euro zone debt crisis and slower global
growth continued to weigh on sentiment.
New orders for U.S. durable goods soared in November and new
home sales hit a seven-month high, although consumer spending
was tepid and a gauge of business investment fell for a second
straight month, data on Friday showed.
The most-active Shanghai copper futures contract
closed down 1.2 percent to 55,200 yuan ($8,700) a tonne,
snapping four consecutive sessions of gains. It hit a two-week
high of 55,940 yuan earlier in the day.
Trading on the London Metal Exchange was closed on Monday
for a public holiday, leaving the Shanghai market volatile to
spells of speculative moves, analysts and traders said.
"The bears are pushing down metals, taking advantage of
absence of London market, as prices are falling on rising open
interest," said Wang Chenyu, an analyst at Minmetals Futures,
adding that copper prices will likely remain between 52,000 yuan
to 58,000 yuan range that has been formed this month.
Shanghai zinc led the decline with a 2.4-percent
drop, its biggest one-day loss in nearly two weeks. The contract
fell to a 1-1/2-week low of 14,555 yuan, before closing at
14,640 yuan.
Trading volume on the most active Shanghai zinc contract
stood at a one-month high of 369,294 lots, after double count.
Concerns about the euro zone debt crisis and slower global
growth continued to weigh on sentiment. Speculators increased
their net short positions on U.S. copper futures and options by
2,065 contracts to a three-week high of 5,455 contracts.
Market participants have expected the world's top economies
to loosen up monetary policy to spur growth, which would buoy
commodities.
Base metals prices at 0703 GMT
Metal Last Change Pct Move YTD pct chg
SHFE CU FUT MAR2 55200 -650 -1.16 -23.17
SHFE AL FUT MAR2 15800 -110 -0.69 -6.18
SHFE ZN FUT MAR2 14640 -360 -2.40 -24.83
SHFE PB FUT 15100 -215 -1.40 -17.71
Shanghai and COMEX contracts show most active months
Shanghai lead launched on March 24
