Jiangxi Copper Co., China's second-biggest smelter by last year output, may lose between 452 million yuan (US$66 million) and 904 million yuan from futures trading this year, Morgan Stanley analyst Berry He said.

Most losses were probably incurred in October as it liquidated short positions in Shanghai while long positions in London were left open amid falling metal prices, Hong Kong-based He said in a research note yesterday. Long positions are bets prices will rise, while short positions anticipate falling prices.

Jiangxi Copper last month said third-quarter profit declined 27 percent to 919.5 million yuan on falling copper prices. Fourth-quarter profit may barely break even, partly due to slumping prices of sulphuric acid, a by-product of copper smelting and used in fertilizers, Morgan Stanley said.

(Shanghai Daily November 7, 2008)