COMEX copper futures were mostly higher Tuesday, but off Mondays 2-1/2-month highs, as traders weighed news of a copper strike in Mexico against the impact of a higher dollar, dealers said.
Active September copper rose 0.45 cent to $1.2820 a lb at 10:13 am EDT (1513 GMT), trading between $1.2930 and $1.2725. Spot July lost 0.05 cent to $1.2770 while the back months were up 0.15 cent to 0.55 cent.
A work stoppage in Mexico bolstered red metal prices in thin but volatile summer trading, though the steadier dollar capped gains, players said
"A strike at the La Caridad copper mine, a subsidiary of Grupo Mexico, broke out last night, and has firmed sentiment somewhat in copper today," Edward Meir, an analyst at Man Financial, said in a report.
Workers at the La Caridad mine, smelter and refinery in Mexico went on strike late on Monday in a dispute over benefits.
La Caridad, in the north-western state of Sonora, produces about 140,000 tonnes in copper concentrates per year and its refinery produces some 240,000 tonnes of refined copper.
Contract negotiations are still pending at Grupo Mexicos US unit, Asarco.
Players were awaiting word Tuesday from Angloplat, where workers at the Rustenburg copper and nickel plant in South Africa are set to strike because of a pay dispute after declaring a labour stand-off last week, according to a union official.
Rustenburg has a rated capacity to make 11,000 tonnes of copper cathode and almost 20,000 tonnes of nickel cathode per year.
The dollar was up versus the euro at $1.2317 at midmorning after a report showing the US trade deficit had narrowed in May more than Wall Street had expected.
As exports jumped, the trade gap tightened to $45.95 billion, against forecasts for a deficit of $48.30 billion.
Meir said he expected to see range-bound trading in base metals in the short term, as markets are approaching technically overbought territory. "Economic news out of the US later in the week will be important in determining direction," he said.
Chartists peg resistance in September copper at $1.30, $1.3470-1.3650, and $1.50-1.54 and support at $1.26-1.25, and then at $1.23-1.2450 and $1.1950-1.20.
Estimated turnover was a light 3,000 lots.
At the London Metal Exchange, three-months copper fetched $2,782.50 a tonne, compared with its Monday close at $2,778.
The menu of US economic data this week includes Wednesdays retail sales for June and import prices and Thursdays June producer price index data and four-week jobless claims.
Analysts said Friday was the most significant day, with Junes consumer price index, which would be a crucial signal for Federal Reserve interest rate policy.
Copper stocks at exchange warehouses fell further overnight. London Metal Exchange inventories went down 475 tonnes to 96,775 tonnes Tuesday. COMEX stocks shed 902 short tons to 89,313 tons on Monday.
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