London Metal Exchange copper fell in Asia on Thursday as Chinese traders liquidated their long positions, supporting market expectations the red metal had reached its peak and was set to consolidate lower, traders said. Three-month LME copper was trading at $3,107/$3,112 a tonne, almost flat from Wednesday's close of $3,107 in London but down more than half a percent from the open in Asia. "There were Chinese long-liquidations on the LME, while Shanghai was relatively quiet," a Tokyo-based trader said.

Shanghai copper futures were mixed across the board on Thursday, with nearby contracts rising mildly but later contracts trading down due to expectations of more abundant copper supplies in 2005. The most-active April contract rose 130 yuan to 30,110 yuan.

Traders said copper appeared to be consolidating lower because of fundamental factors such as rising inventories and increasing supplies. Meanwhile, a steady US dollar had a limited impact on metals trade in Asia on Thursday.

Copyright Reuters, 2005