Copper futures nudged lower on Wednesday, under pressure from a firm US dollar, but traders said that the tight supply of the industrial metal was limiting losses. While the dollar held near a 7-month best against the euro, copper for delivery in three months on the London Metal Exchange was trapped in a range about 9 percent below an all-time high struck on April 12.
"Copper will stay in a range between $3,000 and $3,100," a futures dealer in Shanghai said.
Three-month copper traded at $3,036/$3,041 a tonne by 0425 GMT, a day after closing at $3,047 - about 0.9 percent down on its Friday close. The LME was closed on Monday for a holiday.
The euro, battered by France's rejection of the European Union constitution, hit a 7-month low of $1.2296 against the dollar in New York trade.
It pulled back to $1.2316 by 0425 GMT, but was expected to take another hit from a Dutch vote later in the day that is also tipped to reject the constitution.
Copper stocks held in LME warehouses are about a third of year-ago levels and close to a 17-year low, although 600 tonnes were added on Tuesday, bringing the total to 45,225 tonnes.
Key support for copper would be at $2,965 a tonne, the 3-month low struck on May 18.
Most Shanghai copper futures made slight gains on Wednesday. August, the most active contract, rose 50 yuan from Tuesday's settlement to 29,700 yuan a tonne.
US copper futures ended Tuesday with modest gains in a late rally that pushed the July contract up 0.55 cent to $1.4565 a pound.
Other LME metals were slightly down, with only aluminium, zinc and lead traded in Asia. Three-month aluminium was at $1,736/$1,740 a tonne by 0425 GMT from Tuesday's close of $1,739.Zinc was at $1,276/$1,281 a tonne, down slightly from a close of $1,285, and lead was at $963/$967, from $962.
Nickel was indicated at $16,150/$16,250 a tonne and tin at $7,900/$8,000 a tonne.
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