US copper futures ended down Friday as mixed economic data from Europe and the US underscored concerns about the health of the global economy and fed a price correction from over-heated levels that may extend into the coming week, analysts said. Copper for July delivery eased 0.95 cent to settle at $2.0175 a lb on the New York Mercantile Exchange's COMEX.
Sessions range from $1.9735 to $2.0465. Benchmark July contract having trouble holding the 200-day moving average - Matthew Zeman, head of trading with LaSalle Futures Group in Chicago. Inability to sustain early-May breakout above the 200-day moving average indicative of a false breakout.
Sideways to lower price action expected in the coming week - Zeman. Initial support in July copper seen at the psychological $2.00 level, followed by $1.93-$1.95 area. First resistance pegged at $2.08 - Steve Platt, futures analyst with Archer Financial Services in Chicago.
COMEX estimated futures volume at 18,270 lots by 1 pm EDT (1700 GMT). Final volume on Thursday hit 20,968 lots. Open interest fell by 145 lots to 106,251 contracts open as of May 14. Market down in extended pull-back from overdone speculative interest tied to premature economic recovery hopes - Platt.
Record 3.8 percent plunge in German first quarter gross domestic product reinforced waning optimism for economic recovery. Failure to react strongly to better-than-expected US consumer sentiment and manufacturing data signals loss of upside bullish momentum - Zeman.
A gauge of manufacturing in New York State signalled slowing contraction in May after hitting a record low only two months earlier - New York Federal Reserve. US industrial production fell 0.5 percent in April, dropping for the sixth consecutive month but at a more modest pace than in recent months - Federal Reserve.
Copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 28 percent to 35,389 tonnes from 27,690 tonnes a week earlier. London Metal Exchange warehouse stocks plunged 12,850 tonnes to 357,800 tonnes on Friday. COMEX copper stocks went up 279 short tons to 49,511 short tons as of Thursday.
Peru's largest federation of mining unions has agreed to call an indefinite, nation-wide strike starting on June 15 to demand better working conditions. Mine workers ended a nine-day strike over wages at Xstrata's Lomas Bayas copper deposit in Chile. The deposit has annual output capacity of around 75,000 tonnes of copper. LME copper for three-months delivery edged up $5 to settle at $4,450 a tonne.
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