SHANGHAI: Copper futures plummeted to the daily allowable limit on the Shanghai Futures Exchange yesterday.

Copper for delivery in the spot month closed at 58,640 yuan per ton, decreasing by as much as 2,450 yuan on the settlement price last Friday.

All traded copper contracts for delivery in the next nine months slid to the daily allowable limit in early trading on the futures exchange.

Trade in copper futures showed an upward trend from January to May last year, reaching a record high of $8,800 a ton in May. But since July the copper price has seen a continuous downward trend from the record high to yesterday's settlement price of 60,530 yuan, the lowest since last April.

With the total trading volume reaching 12.6 trillion yuan in 2006, the Shanghai Futures Exchange hit a record high with a year-on-year increase of 92.81 percent in turnover.

"The short-term funds have largely been diverted to the booming stock market," said Ma Qian, an analyst with Shanghai-based Jinyuan Futures Brokerage Co. In addition, the large inventory of copper is expected to meet projected demand in the foreseeable future.

"Despite the sharp drop recently, the price of copper is still high in relation to supply and demand," said Ma.

"The copper price usually keeps close pace with the price in the international market. The slide of copper on the international market casts a shadow on China's market," said Li Rong, an analyst at Changcheng Futures Brokerage Co. "A change in supply and demand in the country's market since last July also contributed to the sharp drop in the copper price."

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