Profit-taking takes sheen off metal prices

Industrial metals prices fell yesterday under pressure from profit taking after a surge in Shanghai copper stocks to a two-year high and soft US consumer confidence data prompted a cross-market sell-off.

Shanghai copper and zinc both fell by their 5 percent daily limits and aluminum was also sharply down, while London nickel slumped 6 percent and copper shed almost 3 percent, adding to Friday's 2.4 percent loss when the market slid from 10-month highs.

"It was all a bit too fast and a bit too easy and the whole market was ready for the correction," a dealer in Sydney said.