US copper futures closed up more than 5 percent Friday, pulled higher by chart-based buying and strength in the broader commodity complex, brokers said. Copper for December delivery jumped 8.40 cents, or nearly 5.2 percent, to settle at $1.7225 a lb on the New York Mercantile Exchange's COMEX division.
The range from $1.6805 to $1.7455. On Thursday, the benchmark December contract fell as low as $1.58, the lowest level for a second-position contract on a continuation basis since mid-July 2005. Copper up on "good follow-through" momentum from Thursday gains in commodity markets - Altavest Worldwide Trading broker Tom Hartman.
COMEX estimated futures volume at 16,067 lots by 1 pm EST (1800 GMT). Final volume on Thursday reached 21,977 lots. Open interest grew by 1,567 lots to 78,845 open contracts as of November 13. COMEX copper bullish momentum tied to early strength in overseas equity markets and sharp gains in the broader metals complex - broker.
Copper strength bucks firmer dollar and sharp losses on Wall Street. US stocks fell more than 3 percent on Friday after data showed the 15-nation euro zone was in recession and US retail sales posted a record drop in October. The US dollar rose against the euro as fresh evidence of a gloomy economic outlook around the world raised investor demand for safe-haven assets.
London Metal Exchange-registered warehouse stocks added another 1,475 tonnes on Friday, bringing total stock levels to 274,100 tonnes - their highest since March 2004. Inventory levels are up more than 36,000 tonnes in November. In Shanghai, copper inventories fell 13 percent to 21,496 tonnes in the week ended Thursday from 24,637 tonnes the previous week.
Spot treatment and refining charges (TC/RCs) paid to Chinese copper smelters have risen 20-40 percent in the past month. Net profit at Europe's largest copper miner KGHM fell 38 percent on tumbling copper prices but came in ahead of market expectations. LME copper for three month delivery settled at $3,820 per tonne, after rising as high as $3,868 per tonne, compared to its close of $3,630 a tonne on Thursday.