Copper rallied above the psychological $2.00 per lb level in New York futures trade on Friday, as fund interest mounted amid a budding sense of optimism about the economy and longer-term demand prospects for industrial metals. Copper for May delivery surged 11.05 cents, or 5.8 percent, to close at $2.0005 a lb on the New York Mercantile Exchange's COMEX division.
Highest level on a settlement basis since October 29, 2008. Session ranged from $1.8710 to $2.0130. COMEX estimated electronic futures volume at 19,886 lots by 12 pm EDT (1600 GMT). Final volume on Thursday hit 30,395 lots. Open interest fell by 603 lots to 96,005 contracts open as of April 2. COMEX copper up strongly on the back of technically-driven fund interest - Bill O'Neill, partner of LOGIC Advisors in Upper Saddle River, New Jersey.
Positive developments from G20 summit in London, coupled with Chinese purchases and better long-term outlook for the metal from attendees at the 8th annual CRU World Copper Conference and Cesco Week in Santiago, Chile, behind upbeat market sentiment - analysts. Copper rally rooted in bullish Chinese data, showing the official purchasing managers' index for March rose to 52.4 from 49.0 in February - the first expansion in the country's manufacturing sector since last September.
Copper's gains accelerated after grim but in-line US unemployment data showing employers slash 663,000 jobs in March, and the unemployment rate grow to 8.5 percent. On Thursday, copper broke above $1.90 a lb after world leaders at the G20 summit clinched a $1.1 trillion deal to combat the economic downturn, with a trade finance package to fund $250 billion of trade over the next two years.
Shanghai copper stocks fell by 9 percent to 22,908 tonnes in the week ending Thursday. London Metal Exchange (LME) warehouse stocks dropped 4,825 tonnes on Friday to 502,150 tonnes. Canceled warrants - material earmarked for delivery - were quoted at 25,475 tonnes on Friday, down from the 27,675 tonnes on Thursday.
COMEX copper warehouse stocks rose by 247 short tons to 46,723 short tons as of Thursday. Copper's demand crisis to evolve into a crisis of supply. LME copper for three-months delivery closed up $140 at $4,310 a tonne. Earlier, it hit a new five-month peak at $4,396.
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