COMEX copper futures finished softer on Wednesday as a sizeable copper inventory rise prompted light selling after Tuesday's rally, which was sparked by a miners' strike in Peru.
Profit-taking in copper emerged after prices ran into resistance and made a double-top high at $1.2850 a lb both Tuesday and Wednesday, before easing, trading sources said.
"With the stock increase and worries of further deliveries, the upside appears to be capped, while the strike news should prevent a large sell-off," said Mike Rapson at Man Financial in a report.
"This means that we will probably see nervous trading conditions in a tight range."
December copper on the New York Mercantile Exchange closed at $1.2770 a lb, off 0.40 cent, after moving from $1.2850 to $1.2655. Spot September shed 0.60 to $1.2750. Back months ended from down 0.45 cent to up 0.10 cent.
On Tuesday, copper rallied as some 1,500 workers at Southern Peru Copper Corp's Toquepala and Cuajone mines began an indefinite strike over pay and benefits, which halted production.
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