By staff reporter Wang Zhen

A slump in metal futures prices continued on the Shanghai commodities exchange Tuesday in the wake of last week's Sichuan earthquake, as investors absorbed the quake's effects on Chinese metal production.

Zinc contracts declined 2.48 percent to close at 18,606 yuan per lot, reversing Monday's climb to 19,000 yuan. Among traded metals, the quake had the greatest impact on zinc, according to the China Metal Industrial Association, because Sichuan is one of four regions -- including Yunnan, Shanxi and Guangxi -- that account for 46 percent of the nation's production.

Shanghai copper retreated 200 yuan to close at 63,280 yuan. Analysts say the Sichuan quake will have little impact on copper production. However, the disaster had some impact on Yunnan Province, which contributes 11.63 percent of the nation's copper production.

Shanghai gold rose a slight 0.3 percent to 203.33 yuan as investors hedged against post-quake inflation expectations. Glenn Maguire, chief economist of Asia Pacific with Societe Generale, predicted a 10 percent increase in consumer prices due to the disaster.

“Food inflation will rise up to 30 percent from April's 23 percent, and the non-food sector will remain stable,” Maguire told Caijing.

1 yuan = 14 U.S. cents

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