Reuters reported that London copper eased as traders took profits after prices hit a near 2 month top in the previous session but signs of a revival in China's growth and hopes the United States would be able to avoid a fiscal disaster curbed losses.
Copper prices have rallied more than 7% since mid November on prospects for renewed demand from China, while further easing measures from a US Federal Reserve meeting expected this week may feed a more robust revival next year.
Mr Matt Fusarelli an analyst at Australia based consultancy AME Group said that "The most recent indications have been that the outlook for copper is picking up. Fabrication demand in China was still running just under double digits in the Q3."
China's refined copper production picked up by more than 11% in November from a year ago. Imports by China rose 40% in the first 10 months to 2.9 million tonnes. It accounts for around 40% of the global refined copper demand.
Three month copper on the London Metal Exchange slipped 0.31% to USD 8,114.50 per tonne by 0419 GMT reversing gains from the previous session when it hit its highest since October 19th 2012 at USD 8,159 per tonne.
Most LME metals hit their highest in around two months on Monday except for outperformer tin, which jumped by 6% striking its loftiest since April 5th 2012. Tin prices have been supported by producer hedging and momentum-based fund buying. The most traded March copper contract on the Shanghai Futures Exchange edged down 0.16% to CNY 57,890 per tonne.
Commodity merchant Sucden said that copper prices were held in check by profit taking and technical selling given fresh concerns surrounding Greece and, more imminently, the Italian situation. It is difficult after the recent price increases, to foresee another major uplift in prices from here. We would therefore envisage a period of consolidation in these new ranges pending fresh incentives.
