US copper futures closed higher on Friday after possible monetary tightening concerns from China subsided and investors refocused on demand and supply-side fundamentals, most notably in Indonesia, analysts said.
Most active July copper settled with a gain of 2.60 cents to $3.6210 a lb on the New York Mercantile Exchange's COMEX division, after dealing in a session range between $3.57 and $3.6605.
Copper for May delivery rose 2.40 cents to finish at $3.6105, while the rest of the board closed with gains ranging from 2.25 to 2.60 cents. Final estimated pit-trading volumes amounted to 5,541 lots, against Thursday's tally of 21,762 lots, which included electronic trading volumes.
As of April 19, open interest in COMEX copper futures fell 1,073 lots to 77,853 contracts. On Thursday, red metal prices were on the defensive after strong growth and inflation data from China fanned fears that the country would likely raise interest rates to cool rapid growth in its economy.
China's economy grew 11.1 percent in the first quarter from a year earlier, while consumer price inflation rose to 3.3 percent in March, above the central bank's comfort level of 3 percent for the first time in two years.
However, global copper markets recovered on Friday, with Chinese buying overnight providing the impetus for the turnaround in New York futures prices. "The fact that they were buying into that correction certainly shows their willingness to come in and buy product," said David Meger, metals analyst with Alaron Trading in Chicago.
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