US copper futures at the New York Mercantile Exchange's Comex division soared to new contract highs early Thursday amid ongoing strike action in Chile, before profit-taking pared the advance, traders said. Active May copper up 0.75 cent at $3.9655 a lb by 10:01 am EDT (1401 GMT). Range was $3.93 to a new contract high at $4.0495.
Copper's ability to take out the higher highs from earlier in the month deemed significant for the market's technical structure, trader said. The sharp gains seen prompting some investors to cash in on the jump to new highs, trader added. Futures volumes estimated at 8,092 lots by 9:00 am EDT (1300 GMT).
Concerns about a supply shortfall at Chile's Codelco, the world's number one copper producer, seen underpinning the market. Codelco strike entered day two on Thursday, paralysing the company's Salvador and Andina divisions, producing 282,000 tonnes of copper between the two in 2007.
Codelco has an annual output of about 1.7 million tonnes per year. The euro hovered just below a record high near $1.60 against the dollar, providing additional support to the dollar-denominated red metal.
Chinese copper production up 19 percent in March from February, National Bureau of Statistics data revealed. Indonesia approved a plan by the local unit of Freeport-McMoran Copper & Gold Inc to reduce its maximum ore production at the Grasberg mine to 220,000 tonnes a day. An energy shortage in Chile seen prompting miners to ensure future energy supplies.
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