US copper lower

13 Sep, 2009

US copper futures ended down for the third straight day on Friday, as early momentum from stronger-than-expected US and Chinese economic data faded, pulling prices further away from key $3.00 a lb resistance. Copper for December delivery closed down 3.00 cents at $2.8465 a lb on the New York Mercantile Exchange's COMEX division.
Range from $2.8250 to $2.9165. Copper running into technical resistance at $3.00 a lb. Market needs to do more "back-and-fill" type trade before a breach of that level - Matthew Zeman, head of trading with LaSalle Futures Group in Chicago. COMEX estimated copper volume at 22,770 lots by 1 pm EDT (1700 GMT). Final Thursday volumes at 26,172 lots. Open interest down 2,869 lots at 116,969 contracts open as of September 10.
Copper down on investor profit-taking at week's end, with rising inventory levels and moderating Chinese import activity weighing on sentiment - Frank McGhee, head precious metals trader with Integrated Brokerage Services LLC in Chicago. London Metal Exchange (LME) warehouse stocks rose by 750 tonnes to 318,325 tonnes on Friday. London stockpiles are up nearly 25 percent since early July, highlighting the lack of real demand.
Copper inventories in warehouses monitored by the Shanghai Futures Exchange jumped 12 percent to a two-year high at 97,396 tonnes. China's August imports of unwrought copper and products fell 20 percent from July, for a second consecutive month of decline. COMEX copper warehouse stocks slipped 150 short tons to 52,604 short tons on Thursday.
Copper down despite strong data showing Chinese industrial output up at a 12-month high of 12.3 percent in August from a year earlier - data from the National Bureau of Statistics. Data suggests economic recovery gathering steam. Copper benefiting from improved economic data stream - Zeman.

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