SHFE base metals ready to trail LME

Base metal futures tanked Friday as some of the froth came off prices, setting the stage for opening losses in domestic markets Monday.

The benchmark three-month copper contract on the London Metal Exchange (LME) plunged almost 2.6 percent Friday to end at $7,992 per ton. The contract lost 1.55 percent last week.

Early in the trading day, the most traded copper contract on the Shanghai Futures Exchange (SHFE) fell 1.13 percent to close at 58,460 yuan ($9,347) per ton, leaving space for a further decline Monday.

Copper and the other base metal futures fell more than 2 percent on international exchanges Friday as the traders focused on the lack of demand out of China, the world's top metals consumer.

Copper prices in particular rallied in September, fueled by the US Federal Reserve's announcement of a new round of monetary easing and initiatives out of China and the EU, according to Nic Brown, head of commodities research at Natixis.

"Just don't expect this surge in prices to be sustainable. It was not a real reflection of improved demand in China and it is no surprise to us that base metals prices have come off quite significantly," he told Reuters.

SHFE aluminum, lead and zinc prices fell 0.23 percent, 0.98 percent and 0.95 percent respectively Friday.