US copper gains early ground despite weak GDP data

NEW YORK, April 29 (Reuters) - U.S. copper futures charged higher in early business on Wednesday after a brief pullback due to a worse-than-expected report on first quarter economic growth was overshadowed by firmer equities and falling inventory levels.

For detailed report on global copper markets, click on [MET/L]

* Copper for July delivery HGN9 was trading up 6.80 cents, or 3.5 percent, at $1.9845 a lb by 10:12 a.m. EDT (1412 GMT) on the New York Mercantile Exchange's COMEX division.

* Morning range from $1.9110 to $1.9935.

* Technicians see first support in benchmark July contract at $1.90, followed by $1.82-$1.86 area, and the 100-day moving average at around $1.64. Resistance eyed at $2.00 to $2.05, and all the way up to $2.25.

* COMEX estimated electronic futures volume at 7,824 lots by 9 a.m.

* COMEX copper pulled back from earlier highs after a Commerce Department report showed the U.S. economy shrank at a 6.1 percent annual rate in the first quarter, following a 6.3 percent contraction in the fourth quarter. [ID:nN28309952]

* "It's not as bad as it looks. The headline figure shows a dramatic decline, but that was driven by a decline in government spending which we know is temporary," said Michael Darda, chief economist and market strategist at MKM Partners LLC in Greenwich, Connecticut. "It's worth noting that (consumer spending) was positive and better than expected."

* Copper maintains positive tone on back of a weaker dollar .DXY, upbeat equities, and ahead of comments from the U.S. Federal Reserve on the state of the economy. [.N]

* Fed statement expected in the afternoon at the end of its two-day policy meeting. Economists expect it to hold its target range for its benchmark funds rate steady at near zero.

* London Metal Exchange (LME) copper stocks fell by 8,825 tonnes to a three-month low of 411,450 tonnes on Wednesday. <LME/STX1>

* Canceled warrants -- metal tagged for delivery -- stood at 69,400 tonnes from 70,125 tonnes the day before.

* There were 8,125 tonnes of fresh cancellations on Tuesday, bringing the percentage of canceled warrants in the system up to 16.9 percent. The ratio of canceled warrants to total tonnage stands at its highest since early April 2008.

* COMEX copper stocks were unchanged at 48,056 short tons as of Tuesday.

* Treatment and refining charges paid to copper smelters in China to process foreign concentrates have fallen more than a third in the past six weeks on firm Chinese demand, but should rise next month as buying slows. [ID:nHKG188818]

* Zambia's Mopani Copper Mines, majority owned by Swiss commodities trader Glencore International AG [GLEN.UL], has reversed a decision to halt operations due to a cost savings plan and higher copper prices. [ID:nLT857604]

* LME copper for three-months delivery MCU3 last traded at $4,325 a tonne, up $105 from Tuesday's close. (Reporting by Chris Kelly; editing by Jim Marshall)