US copper futures lost more than 2 percent by the close on Friday, as a firmer dollar and demand concerns highlighted by rising stockpiles combined to pull prices back down from the previous session's three-week highs. Copper for December delivery sank 6.05 cents, or 2.1 percent, to close at $2.8380 a lb on the New York Mercantile Exchange's COMEX division.
Range from $2.8225 to $2.8915. On Thursday, December contract rallied to $2.9010, its loftiest level since September 18. COMEX estimated futures volume at 19,988 lots by 1 pm EDT (1700 GMT). Dollar-denominated copper weighed down by bounce in the greenback after Federal Reserve Chairman Ben Bernanke says US central bank ready to tighten monetary policy as recovery takes hold.
Strong downtrend in the dollar and a strong uptrend in the metals offers great opportunity to add to positions - Zachary Oxman, managing director with TrendMax Futures in Encinitas, California. Copper losses tied to near-term demand concerns underscored by incessant stock builds in global warehouses this year.
London Metal Exchange warehouse stocks fell by 250 tonnes to 346,600 tonnes on Friday, but remained near five-month highs. Shanghai Futures Exchange copper stocks fell 7 percent to 89,822 tonnes in the latest weekly reporting period, from 96,719 tonnes last week. Stockpiles are up over 400 percent since the start of the year.
COMEX copper warehouse stocks added another 544 short tons on Thursday, bringing total levels to 55,027 short tons. Waning supply-side support seen from anticipated acceptance of wage deal by workers at Chile's Escondida, the world's largest copper mine.
China's imports of unwrought copper and semi-finished copper products expected to fall for third straight month in September, as the metals giant continues to digest record imports in the first half of the year. LME copper for three-month delivery last bid at the kerb close at $6,230 a tonne from $6,330 on Thursday.
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