US copper futures at the New York Mercantile Exchange's Comex division ended lower on Wednesday as a firmer US dollar and a potential resolution to a week-long strike at Chile's Codelco encouraged some investors to cash in, brokers and analysts said.
Active May copper ended down 6.15 cents, or nearly 1.6 percent, at $3.9040 a lb. Range was $3.8750 to $3.9785. By 1 pm EDT (1700 GMT), futures volumes estimated at 24,097 lots. Final volumes on Tuesday totalled 21,139 lots. Open interest in the market was up 1,339 lots at 107,654 contracts open as of April 22. Copper slides on positive rebound in the dollar, weakness in the price of crude oil, and concerns about a possible resolution to the weeklong strike at the world's largest copper producer, Codelco.
The euro recorded its biggest drop against the dollar in three weeks after softer manufacturing activity and comments by European policy-makers signalled slower economic growth in the euro zone.
In afternoon trade in New York, the euro was down 0.6 percent at $1.5893, after falling as low as $1.5862 in the session. On Tuesday, the European currency traded at a record peak at $1.6019. Copper prices supported by the strike at Codelco, which in its eighth day, continued to paralyse operations at its Andina and Salvador divisions.
Sentiment dampened after the Chilean mine minister reported both sides were progressing toward a deal to resolve the work stoppage, which is costing the company about $10 million a day in lost production. Record-high copper prices help boost Freeport-McMoRan Copper & Gold Inc's first quarter profit which more than doubled.
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