Comex copper futures rose on Monday as fresh inventory declines prompted trade buying, but prices kept to their recent range as market-moving news remained scarce, dealers said.
Most-active May settled at $1.3580 a lb, up 0.95 cent from Friday, after moving from $1.3430-$1.3670. Spot March gained 0.70 cent to $1.3595.
The rest closed down 0.80 cent to up 1.05 cents. Trading was lackluster as futures held to a broad $1.30-$1.40 range, floor sources said, though some expect investment funds to come in to protect their long position as the end of the first quarter approaches.
"We'll be keeping a close eye on the last day of the month on Wednesday for funds to perhaps come in to goose their positions," one trader said.
"But for now, we're kind of stalled here. Our first resistance number is $1.3680" basis May futures.
Funds pared their overall long position in Comex a copper future in the latest week, but liquidation remains a risk in the market, according to analysts.
In CFTC Commitments of Traders data issued late on Friday, net speculative longs fell to 18,582 lots in the March 23 week, from 19,792 contracts a week.
London copper prices rose on Monday, with another daily inventory fall and backwardation, the premium in the nearby month over futures, lending support, traders said.
LME 3-months copper settled $15 higher at $2,971 a tonne.
Refined copper stocks in London Metal Exchange warehouses fell below the psychological 200,000 tonne mark, the latest in their steady slide from a record high near 1 million tonnes two years ago.
"This could limit any sharp break lower (in price)," Man Financial analyst Ed Meir said in a daily market report. He expects copper prices to stay range-bound until the market gets direction later in the week.