US copper futures settled up over 2 percent on Friday in a technical rebound from fresh 4-year lows made overnight, with a weak dollar providing support in extremely light holiday turnover. Copper for March delivery closed up 2.95 cents at $1.3035 a lb on the New York Mercantile Exchange's COMEX division.
The session range from $1.3230 to $1.2550, which marked a new low for a fourth-month position contract dating back to October 2004 on a continuation basis at. Conditions extremely thin as London financial markets closed for the Boxing Day holiday - brokers. COMEX estimated volume at 2,455 lots by 12 pm EST (1700 GMT).
Copper moves higher in technical bounce from new overnight lows. Dollar weakness, slightly positive tone on Wall Street, and gains in crude oil prices provide support - brokers. The dollar weakened slightly against the euro on Friday in response to the grim outlook for the US economy heading into the new year. On Wednesday, data showed consumers cut their spending in November for the fifth straight month and orders for costly manufactured goods slumped, while the number of workers filing new claims for jobless benefits last week hit a 26-year peak.
In afternoon trading in new York, the euro was up 0.3 percent against the dollar at $1.4060. Industrial output in Japan plunged a record 8.1 percent in November, while the ratio of jobs available to job seekers fell to a nearly five-year low. Japan's output of rolled copper products fell 11.7 percent to 68,501 tonnes in November from a month earlier on a seasonally adjusted basis - Japan Copper and Brass Association.
Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 16 percent to 15,326 tonnes in the week ended Thursday from 18,192 tonnes the previous week. London Metal Exchange (LME) warehouses added 3,250 tonnes to 331,450 tonnes on Wednesday.
COMEX copper stocks were flat at 31,083 short tons as of Wednesday. World refined copper surplus rose 67 percent in January-September as weak demand in Japan, the European Union and the United States more than offset strong Chinese demand - the International Copper Study Group (ICSG). London Metal Exchange copper for three months delivery closed Wednesday at $2,825 a tonne.
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