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BLBG: Shanghai Copper Falls From Eight-Month High on Rising Imports
 
June 11 (Bloomberg) -- Copper futures fell from an eight- month high in Shanghai on speculation record imports may be adding to stockpiles faster than the recovery in metals demand.

Copper imports by China, the world’s largest consumer, climbed to a record 422,666 metric tons last month, the nation’s customs office said in preliminary trade data today. A decline to more than 300,000 tons had been expected, according to Minmetals Starfutures Co.

“Indicators from China’s spot market show demand is obviously lagging behind the surge in supplies, so we now have Shanghai copper performing noticeably weaker than London,” Chen Yisheng, a Minmetals Starfutures analyst, said from Shenzhen today.

September-delivery copper on the Shanghai Futures Exchange fell as much as 0.8 percent to 41,400 yuan ($6,058) a metric ton, and traded at 41,680 yuan at 11:15 a.m. local time.

Shanghai copper jumped to the highest since October yesterday, tracking higher London prices. The spot price discount to futures widened to 150 yuan a ton yesterday, according to HNA Topwin Futures Co.

China has boosted imports of the metal used in plumbing and electrical cable as the government ramps up the country’s 4 trillion yuan ($586 billion) stimulus program to counter the impact of the global recession.

Inbound shipments advanced 7 percent to 399,833 metric tons in April, the Beijing-based customs office said May 12. Shanghai stockpiles jumped 51 percent to 45,480 tons last week, the biggest increase in two years.

Three-month copper on the London Metal Exchange rose as much as 0.6 percent to $5,201 a ton and last traded at $5,186 a ton. Copper for July delivery in New York fell 0.3 percent to $2.36 a pound.

--Li Xiaowei, John Liu in Shanghai. Editors: Gavin Evans, Matthew Oakley

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