US copper futures rose to their highest levels in nearly two weeks early Friday as strength from Shanghai markets this week drove momentum and helped override worse-than-expected employment data in the US Copper for March delivery firmed 8.10 cents, or 5.4 percent, to $1.5810 a lb by 10:37 am EST (1537 GMT) on the New York Mercantile Exchange's COMEX division.
Ranged from $1.5085 to $1.5950, its highest level since January 27. COMEX copper tracks fourth straight day of gains in Shanghai copper amid investor optimism that China, the world's top consumer of the red metal, could soon see an economic recovery. Weaker-than-expected job losses in the US failed to deter copper's morning rally - analysts. US employers slashed 598,000 jobs in January, the deepest cut in payrolls in 34 years.
Market focusing on areas outside of US, namely China, which has seen much better buying interest - Archer Financial Services' futures analyst Steve Platt. Imports of unwrought copper and semi-finished copper products by China are expected to remain high in January, while imports of copper cathode should be near December's record level at 211,527 tonnes.
Reports this week that China was buying copper, to gradually triple its state reserves to about 1 million tonnes underpinned the red metal's recent strength. Copper is seeing some additional support from potential economic stimulus passage in the US - Platt. US President Barack Obama urged action on a $900 billion stimulus bill before Congress to stave off "catastrophe".
Rising stockpiles cloud copper's demand outlook. COMEX copper stocks edged up 43 short tons to 40,848 short tons as of Thursday. Shanghai copper warehouse stocks rose 72 percent, or by 11,986 tonnes, to 28,553 tonnes from 16,567 tonnes two weeks earlier. Copper Resources Corp has significantly scaled back the development of the Kinsenda mine and is planning to raise capital.