SINGAPORE: London copper slipped on Tuesday as traders took profits from a one-month peak hit the session before, but steady buying from top consumer China kept a floor under prices. China's central bank removed controls on bank lending rates, effective Saturday, in a move which was seen as signalling the new leadership's determination to push market-oriented reforms and helped to fuel a rally on Monday. "It's more symbolic than having a real impact ... but sentiment wise it did have impact," analyst Dominic Schnider of UBS Wealth Management in Singapore said. "Still, the underlying story hasn't changed. It's a sell-the-rallies market because in the second half we don't expect a re-acceleration of China and instead we may be facing disappointment." Three-month copper on the London Metal Exchange shed around half a percent to a session low of $6,985 a tonne before paring losses to trade at $7,022.50 at 0202 GMT, little changed from the previous session. Copper on Monday reached its highest level since June 18 at $7,053 a tonne. The most-traded November copper contract on the Shanghai Futures Exchange climbed 0.80 percent to 50,580 yuan ($8,200) a tonne. China remains committed to steering its economy towards consumption as the main growth driver, and away from investment and exports, and will fine-tune policies to deal with any prolonged slowdown, a government official said on Monday. Reflecting healthy demand from China's physical market, the premium for local copper cathode against the August front month ShFE futures contract climbed to around 63 yuan on Monday, the highest in around one month. In industry news that could impact banks with stakes in storage, MillerCoors LLC has urged US lawmakers and regulators to press for greater regulatory oversight of the London Metal Exchange, the world's largest metal market, after years of inflated aluminium prices that have cost the industry billions of dollars.

Source