US copper futures ended up at a fresh two-year top on Friday, after stronger-than-expected manufacturing data in China reinforced healthy demand prospects from the world's largest consumer. Copper for December delivery rose 3.90 cents, or 1.1 percent, to settle at $3.6905 per lb on the COMEX metals division of the New York Mercantile Exchange.
Loftiest level on a closing basis for the third-position futures contract since July 22, 2008. Range from $3.6535 to $3.7220, a new contract high. COMEX estimated final copper futures volume at 25,332 lots, down from Thursday's count at 34,494 lots. Open interest up 884 lots at 148,532 contracts as of September 30. Copper up in extension of demand-driven rally, with more positive outlook from release of robust Chinese manufacturing data for September - Bill O'Neill, partner of LOGIC Advisors in Upper Saddle River, New Jersey. Copper gains capped after US data showed growth in its manufacturing sector slowed in September, while construction spending rose in August.
Data could lead to more US monetary policy easing from Federal Reserve, which could further support metals' rallies at the expense of the US dollar - analysts. Constructive supply-side backdrop reflected in London Metal Exchange (LME) warehouse stocks data, showing inventories down another 350 tonnes to 373,800 tonnes, having fallen from 6-1/2 year highs at 555,075 tonnes in mid-February.
COMEX copper warehouse stocks off 192 short tons at 84,883 short tons as of Thursday. LME copper untraded at close, but last bid at $8,095 a tonne from Thursday's last bid at $8,010. LME copper earlier touched a more than two-year top at $8,178.
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