Reuters reported that copper prices in Shanghai fell for 6 day tracking losses in commodities overnight after Japan's business sentiment worsened and a survey showed China's factory output contracted, deepening fears about the euro zone debt crisis.

The most traded February copper contract on the Shanghai Futures Exchange dropped 4.04% to CNY 53,460 per tonne at 0701 GMT off an earlier three week low of CNY 52,820. Futures are set for their longest losing streak in more than 2 years and have lost 26% this year.

Three month copper on the London Metal Exchange slipped 0.12% to USD 7,201.50 per tonne after prices tumbled more than 5% overnight. The decline on Wednesday was the biggest since October 20th 2011. Prices have dropped almost 30 percent from a peak of USD 10,190 reached in February.

Mr Ong Yi Ling an investment analyst at Phillip Futures in Singapore said that "Markets are frustrated and disappointed, waiting for a road map on the resolution of the 2 year old debt crisis. Risk assets are all down. The debt crisis will be with us at least through the H1 of 2012."

Adding to the gloomy outlook was Japan's business sentiment index, which worsened in the three months to December, the central bank's tankan survey showed, as a stubbornly strong yen Europe's debt crisis and slowing global growth clouded the country's recovery prospects.

China's factory output shrank again in December after new orders fell, a preliminary purchasing managers' survey showed entrenching expectations that manufacturers are struggling with waning global demand and tight domestic credit conditions.

(Sourced from Reuters)