US copper futures settled at a three-week low below $2.15 a lb on Monday, as a strong dollar and expectations of waning purchases from the world's top consumer China combined to drag prices lower. Copper for September delivery plunged 11.75 cents, or 5.2 percent, to settle at $2.1440 a lb on the New York Mercantile Exchange's COMEX division.
Lowest level for the benchmark September contract on a closing basis since May 27. Session ranged from $2.1390 to $2.2580. COMEX estimated futures volume at 33,530 lots by 1 pm EDT (1700 GMT). Final volume on Friday at 29,747 lots.
Closed arbitrage opportunities between the Shanghai and London Metal Exchange (LME), rising inventories at the Shanghai Futures Exchange (SHFE) and an 81 percent decline in cancelled warrants - metal set to leave LME warehouses - from their recent peak in April support end of China restocking phase - Catherine Virga, senior base metals analyst with CPM Group in New York. China's imports of refined copper hit a record 337,230 tonnes in May, up from a previous record of 317,947 tonnes in April and 258 percent higher from a year earlier.