US copper futures stabilised at slightly higher levels early on Friday as bargain hunters used an overnight price decline to 7-1/2-month lows as a buying opportunity, traders said.
Larry Young, senior trader at Infinity Futures Inc in Chicago, said the market's failure to extend its overnight losses prompted some players to swoop in and establish some positions, but noted the overall tone remained cautious.
Copper for December delivery was up 1.15 cents at $3.0925 per lb by 10:46 am EST (1546 GMT) on the New York Mercantile Exchange's COMEX division, in the upper end of its $3.0280 to $3.1180 session range. The $3.0280 morning trough marked the lowest level for the contract since March 29.
Futures volume was estimated at 6,169 lots by 10:00 am A mid-week earthquake in Chile, the world's leading copper producer, ignited a panicked wave of short-covering and fresh long positions, boosting prices as much as 6.4 percent Wednesday - its single largest daily percentage gain since July 6, 2006.
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