US copper futures ended down on Thursday after hitting their lowest levels in three months as a firm dollar and an uncertainties surrounding near-term demand prospects continued to keep the metal's recent downtrend intact, analysts said. Copper for July delivery closed down 4.15 cents at $3.5380 a lb on the New York Mercantile Exchange's COMEX division.
The range spanned from $3.5830 to $3.5065, its lowest level since March 20. Near-term support in July contract pegged at $3.50, followed by the March 20 low at $3.4585. Resistance seen at $3.60. By 1 pm EDT (1700 GMT), volumes were estimated at 25,243 lots. Final volumes on Wednesday totalled 22,714 lots. Open interest in the market climbed 1,873 lots to 98,102 open contracts as of June 11. "For the balance of the week, metals are going to be held hostage by the fortunes of the dollar and to a lesser extent, by the energy and US stock markets." - MF Global analyst Edward Med against the euro on Thursday, sending the European currency on track for its worst week versus the greenback in three years.
Solid retail sales data bolstered US rate hike expectations. Total sales at US retailers rose 1 percent in May as many consumers had more cash from government rebate checks. A stronger American currency makes dollar-denominated assets like copper more expensive for holders of foreign currencies.
Questionable demand growth in China, the world's leading copper consumer, limits copper's upside price potential. China's imports of unwrought copper and semi-finished products fell 19.2 percent in May to 198,894 tonnes from April. Analysts expect refined copper imports data, due at the end of the month, to show a fall of more than 6 percent in May from April as demand growth slows and domestic output rises.
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