US copper futures advanced at the open in response to higher London prices, then added to gains after a decline in US consumer price data pushed the dollar down, traders said. "I think it's the positive (economic news) and the euro coming up and the dollar's coming off," said one trader. At the New York Mercantile Exchange's COMEX division, copper for July delivery rose 1.75 cents to $1.5440 per lb., in a range between $1.5390 and $1.5465 a lb.
On a spot basis, June COMEX copper advanced to 1.05 cents to $1.5950 a lb. The rest were 0.75 cent lower to 1.70 cents higher, though only a few contracts traded. COMEX estimated 0900 EDT copper volume at 2,000 lots.
The softer consumer inflation data suggested the Federal Reserve would probably not need to alter its gradual pace of raising US interest rates, which also means dollar interest rate differentials will not accelerate quickly. A slipping dollar helps dollar-denominated copper prices in overseas markets. Wednesday's copper inventories at the London Metal Exchange rose by 575 tonnes to 39,300 tonnes, but are still at historical lows. At COMEX warehouses, stocks fell by 287 short tons on Tuesday to 18,011 tons.
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