Copper futures were steady on Thursday, about 2 percent below last week's all-time high, but funds were poised to buy the industrial metal, should rising stocks push prices down. Copper for delivery in three months on the London Metal Exchange was trading at $3,587/$3,592 a tonne, a day after closing in London at $3,590 a tonne.
"With stocks rising it will go down to the $3,540 level. But I think we will see some fund buying at that level, so it won't fall significantly," a futures trader in Tokyo said. LME stocks, which rose 2,250 tonnes on Wednesday to 65,150 tonnes, have multiplied more than 2.5 times in the last month from a 31-year low of 25,525 tonnes on July 21.
Copper, used in computer chips and electrical cables, has risen 17 percent in value over the last three months, peaking at $3,670 a tonne on August 16.
Currency markets had little effect on copper, though the dollar slipped after surprise weakness in US durable goods orders. It fell to 109.84 yen from around 110.20 yen in late New York trade.
A weaker dollar makes commodities denominated in the US currency cheaper for holders of other currencies. In Shanghai, the most active November contract ended the session at 34,390 yuan a tonne, down 240 yuan from Wednesday's settlement.
Aluminium for three-month delivery on the LME traded at $1,886/$1,890 a tonne, steady from London's close of $1,888. Zinc was at $1,346/$1,351 a tonne from a close of $1,350.
Tin traded at $7,100/$7,200 a tonne, nickel at $14,800/$14,900 a tonne and lead at $863/$868 a tonne.