US copper futures bounced from fresh three-week lows to close sharply higher Friday, buoyed by rallies in the broader metals complex and optimism ahead of anticipated economic stimulus plans in the US. Copper for March delivery surged 7.60 cents, or 5.4 percent, to settle at $1.4720 a lb on the New York Mercantile Exchange's COMEX division.
The session range from a fresh three-week low at $1.3730 to $1.4770. COMEX estimated final electronic volume at 14,117 lots. Final volumes on Thursday hit 14,515 lots. Open interest rose 1,309 lots to 85,427 contracts open as of January 22.
COMEX copper vaults higher on investor short-covering, with spill-over support from gold rally and broader strength in the London base metals complex - traders. Matthew Zeman, head of trading with LaSalle Futures Group in Chicago, said copper finding some support from US economic stimulus plan.
US President Barack Obama expected an $825 billion stimulus package for the ailing US economy to be approved by his target of mid-February. Record low US housing starts and building permits in December reflective of copper's weakened state of demand.
COMEX copper stocks went up 480 short tons to 38,535 short tons as of Thursday. Copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 4 percent on the week ended Thursday. Subdued Chinese market presence due to week-long Lunar New Year next week.
Chinese copper smelters have settled 2009 term treatment and refining charges (TC-RCs) with global miners that are nearly 60 percent up on last year. Demand worries sharpened after China said its economic growth slumped to 6.8 percent last quarter, dragging down the pace of expansion for all of 2008 to a seven-year low of 9.0 percent.
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