US copper futures ended down for the third straight day on Friday, hitting their lowest levels since mid-October, as concerns over euro zone fiscal problems drove further sales of assets perceived as risky. Benchmark copper for March delivery slipped 2.15 cents to settle at $2.8575 per lb on the New York Mercantile Exchange's COMEX division.
Range extended down from $2.8905 to $2.8110, which marked is lowest level since October 15. March copper contract down nearly 7 percent on the week. COMEX estimated futures volume stood at 51,823 lots by 1 pm EST (1800 GMT). Final volume on Thursday hit 49,757 lots. Open interest dropped 2,155 lots to 130,015 contract open as of February 4. Copper weighed down by broader market risk aversion tied to fiscal stability of euro zone - analysts.
Copper likely to consolidate losses next week. Vulnerable to further liquidation amid backdrop of stronger dollar and weaker equities - Sterling Smith, an analyst for Country Hedging Inc in St. Paul, Minnesota. Euro fell to its lowest level against the dollar since May on fears of euro zone member default and mixed US jobs data.
US employers unexpectedly cut 20,000 in January, but the unemployment rate surprisingly fell to a five-month low of 9.7 percent. Copper market sentiment weakened by fear Chinese efforts to restrict bank lending and head off inflation could crimp demand for industrial metals.
London Metal Exchange copper warehouse stocks gained 1,725 tonnes to 541,150 tonnes on Friday. Deliverable copper inventories in warehouses monitored by the Shanghai Futures Exchange up 13 percent at 114,302 tonnes from 101,210 tonnes a week ago. COMEX copper stocks gained 516 to 105,164 short tons as of Thursday. LME benchmark copper for three-month delivery shed $125 to close at $6,265 a tonne.
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