Shanghai copper futures fell to their lowest in more than a week on Thursday as traders booked profits following an expected 25-basis-point interest rate cut by the U.S. Federal Reserve, and due to higher supply from top consumer China.

Following Wednesday’s rate cut, the U.S. central bank also indicated that more cuts would follow in October and December.

Traders closed some long positions to cash in profits from bets on the rate cut, weighing on prices of the red metal used in power and construction.

The most-traded copper contract on the Shanghai Futures Exchange slipped below the key psychological level of 80,000 yuan ($11,256.51) per metric ton, down 1.36% to 79,620 yuan a ton.

The contract hit its lowest since September 10 at 79,500 yuan earlier in the session.

Benchmark three-month copper on the London Metal Exchange was down 0.43% at $9,953.5 a ton by 0815 GMT after touching its one-week low at $9,925 on Wednesday.

“Prices have slid to a level close to their 20-day moving average and may fall into a prior support range between 79,000 yuan and 79,500 yuan,” said Xiao Jing, lead analyst at broker SDIC Futures.

“Eyes are now on inventory data to be out on Friday.”

Also, higher metals output in China weighed on sentiment, ANZ analysts said in a note.

China’s refined copper output in August jumped 15% year-on-year to near a record high level, official data showed.

Among other SHFE metals, aluminium slid 0.91%, nickel dipped 0.89%,tin fell 1.46%, and zincZNC1! shed 1.1% while lead Ladded 0.38%.

For other LME metals, aluminium lost 0.26%, nickel languished 0.88%, lead shed 0.1%, tin slid 0.63%, and zinc  fell 0.73%.
Source: Reuters