US copper futures drifted to a softer close on Friday, extending a phase of consolidation from Tuesday's sharp sell off and falling under the weight of a firmer dollar and rising stockpiles in global warehouses. New York commodity markets will be closed on Monday for the Matin Luther King Jr. holiday. Trading will resume on Tuesday.
Benchmark copper for March delivery ended down 2.15 cents at $3.3660 per lb on the New York Mercantile Exchange's COMEX division. Range from $3.3480 to $3.4260. COMEX estimated futures volume at 17,238 lots by noon EST (1700 GMT). Final volume on Thursday hit 31,993 lots. Open interest dropped 4,351 lots to 143,074 contracts as of January 14.
Copper locked in range between $3.3145 and $3.4290 per lb, with little impact felt from in-line US industrial production data - Larry Young, senior trader at Infinity Futures in Chicago. Production by US manufacturing, mining and utilities rose 0.6 percent in December, in line with expectations, as a cold snap boosted electric and gas utility output - Federal Reserve.
Steadier tone in US consumer sentiment and slower-than-expected rise in December consumer prices added to the neutral economic impact - traders. Firmer tone in US dollar from stable consumer price inflation data cap gains in dollar-denominated metal - traders.
Copper prices mired in a lower drift, with near-term concerns about incessant stock builds in global exchange warehouses - analysts. London Metal Exchange warehouse stocks added 1,500 tonnes on Friday, bringing total levels to 525,475 tonnes, their highest since mid-February. Deliverable copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 2 percent to 100,588 tonnes from 98,814 tonnes a week earlier.
COMEX copper stocks up 276 short tons at 99,917 short tons as of Thursday. Copper supported by tight market conditions reflected in 2010 copper treatment and refining charges of $46.50 a tonne, or 4.65 cents a lb, between BHP Billiton Plc/LTD and Japanese and Chinese smelters - Justin Lennon, analyst at Mitsui Bussan Commodities (USA). LME copper for three-month delivery closed down $60 at $7,430 a tonne.
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