US copper inched higher in quiet morning business Friday, on follow-through support from Thursday's technical breakout and as supplies continue to fall, brokers said.
"Not a lot has changed, however, some things have continued. The stock drawdown, the tightness in London, the potential for strikes," one broker said. Copper for July delivery was up 2.65 cents at $3.4220 a lb on the New York Mercantile Exchange's COMEX division, moving in a range from $3.4275 to $3.3760 by 10:02 am EDT (1402 GMT).
Resistance for July copper was pegged by traders at $3.4375 and support at $3.3475-$3.3350. Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 4 percent in the week ended Thursday, while aluminium inventories fell 16 percent, the exchange said on Friday.
Spot copper for June delivery on COMEX was 2.10 cents higher to $3.4145. The rest of the COMEX copper complex ranged from 0.65 to 2.00 cents higher. Estimated copper futures volumes by 9:00 am stood at 4,905 lots.
Another fall in London Metal Exchange (LME) copper inventories provided mild support to prices Friday, with LME warehouse stocks dropping overnight by 1,475 tonnes to 127,450 tonnes. Copper inventories under New York's COMEX dropped 691 short tons to 27,500 short tons by Thursday's close.
The dollar rose on Friday after news that US job creation in May was greater than expected further reduced expectations that the Federal Reserve will cut benchmark interest rates this year. A firmer dollar makes industrial metals more expensive for holders of other currencies but brokers said it did not appear to be a factor for copper futures.
LME copper for delivery in three months last traded at $7,490 a tonne, up $120 from Thursday's kerb close. It traded as high as $7,528.75 a tonne in early trade, its highest since May 22.