(Updates prices, adds analyst comment)
TOKYO/BEIJING Dec 26 Shanghai metals fell
across the board on Monday on concerns about demand growth in
China as the government continues a crackdown on soaring house
prices and pollution.
The most-traded copper contract on the Shanghai Futures
Exchange closed down 1.63 percent at 44,070 yuan
($6,341.74)a tonne at 0700 GMT, while other metals fell more.
Shanghai zinc fell 6.38 percent at close and nickel
lost seven percent while lead ended 4.97
The London Metal Exchange (LME) is closed for holidays on
Monday and Tuesday and will reopen on Wednesday, Dec. 28.
Analysts raised concerns about China's property market,
pointing to moves to limit property speculation in 2017 and a
likely drop-off in government efforts to boost
News of a government probe into several futures brokerages
over their compliances also weighed on prices.
"A lack of liquidity and a flurry of negative news have
caused more panic, triggering heavy selling," said Li Lin of
China Sublime Information Group.
With nickel futures diving below 6,000 yuan per tonne mark,
miners would come under greater pressure.
Some analysts expect prices to slide further through the
start of 2017, until nickel processing plants start buying when
they reopen after the Lunar New Year in early February.
Bloomberg reported on Friday citing a source that Chinese
president Xi Jinping told the Communist Party's financial and
economic leading group that the world's second-largest economy
could tolerate growth lower than 6.5 percent.
China's crackdown on exhaust-spewing factories including
steel mills, textile and cement factories and coal-fired power
plants will also ripple across bulk commodity markets into 2017.
However, copper, which is widely used in power and
construction, is up around 16 percent this year and on track for
its largest annual rise since 2010.
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Most active ShFE nickel
Three month LME tin
Most active ShFE tin
($1 = 6.9485 Chinese yuan renminbi)
(Reporting by Meng Meng and Xu Muyu in Beijing; Editing by Vyas