US copper futures drifted on either side of unchanged early on Tuesday, unable to gain traction in one direction or the other, as the market looked set to consolidate after its recent breakout to multi-month highs, analysts said.
"It remains to be seen whether copper will regain the head of steam it showed earlier, or whether after five days of straight gains, it will instead head for a much-needed correction," said Edward Meir, metals analyst with MF Global.
Copper for March delivery was trading up 0.70 cent to $3.5655 a lb by 10:32 am EST (1532 GMT) on the New York Mercantile Exchange's COMEX division, moving in an early $3.5275 to $3.5825 trading range.
On Monday, the benchmark March contract hit a session peak of $3.5990, its highest level since October 29. Futures volumes were estimated at 6,835 lots by 9:00 am Copper prices failed to garner any follow-through momentum early Tuesday despite another bullish inventory report from the London Metal Exchange, which has been the main driver of the markets recent bout of strength.
On the production front, Grupo Mexico said on Monday it is producing less than 300 tonnes of copper at its giant Cananea copper pit, the first output since the mine reopened following a five-month long strike.