US copper futures ended sharply lower on Friday, under pressure from a sell-off on Wall Street and a recovery in the dollar after a mixed double-dose of data countered optimism from Thursday's GDP figures. Copper for December delivery plunged 7.40 cents, or 2.4 percent, to settle at $2.9555 a lb on the New York Mercantile Exchange's COMEX division. Range from $2.9420 to $3.05.
COMEX estimated futures volume at 31,066 lots by 1 pm EDT (1700 GMT). Final volume on Thursday hit 32,996 lots. Open interest up 2,015 lots to 139,976 contracts open as of October 29. Copper down on month/week-end book squaring with stronger dollar and crumbling equity markets feeding bearish momentum - Ralph Preston, futures analyst with HeritageWestFutures.com in San Diego, California.
US equities slumped more than 2 percent and the dollar rebounded after data showed consumer sentiment sour in October, while Midwest manufacturing activity showed signs of life. Consumer sentiment data counters above-forecast third quarter growth numbers in the US economy.
GDP data manipulated and massaged by government spending, which eventually has to come to an end. Economy needs to see private sector growth - Zachary Oxman, managing director with TrendMax Futures in Encinitas, California. Copper downside limited due to 18-day worker strike at Chile's Spence copper mine, which has reduced output to a minimum.
London Metal Exchange copper stockpiles up 800 tonnes to a near 5-month high at 372,200 tonnes on Friday. COMEX copper warehouse stocks increased by 971 short tons on Thursday to 61,465 short tons. Copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 7 percent to 102,835 tonnes from 95,976 tonnes a week earlier.
Chile's state-owned Codelco, the biggest copper miner in the world, said its copper production rose 16 percent in the January-September period compared with a year earlier. Chile's Escondida copper mine saw its January-September output fall 21 percent from a year earlier to 788,126 tonnes. Chilean copper output in September up 8.5 percent from the same month last year. LME three-month copper closed down $184.50 at $6,480 a tonne.
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