US copper trims loss as stocks firm, GM helps

NEW YORK Aug 18 (Reuters) - U.S. copper futures ended with only moderate losses on Tuesday when U.S. equity markets traded strong, then moved into positive regions in after hours trade when General Motors announced it would increase car and truck production for the rest of 2009, traders said.

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

* Copper for September delivery HGU9 was down 0.90 cent, or 0.32 percent, at $2.7615 a lb by the close on the New York Mercantile Exchange's COMEX division.

* Trading band remained fairly tight, though probed lower levels dating back to Aug. 12 at $2.7210 from a high at $2.8150 a lb.

* Last Friday, September copper reached a high at $2.9490, a peak dating back 10-1/2 months that many participants thought overshot fundamentals.

* COMEX estimated final copper volume at 30,407 lots, compared with 33,264 lot-count on Monday.

* Open interest fell by 593 lots to 118,798 open contracts as of Aug. 17.

* Copper prices cut earlier losses when U.S. equity markets recovered from sharp losses on Monday -traders.

* "Monday's selling led to a lot of nervousness in commodities, especially the copper market which is particularly sensitive. When equity markets didn't crash this morning and later managed to put together a rally, copper benefited," said Sterling Smith, analyst for Country Hedging Inc in Minnesota.

* U.S. stocks rebounded after sharp losses in the previous session as better-than-expected results from big retailers encouraged investors to get back into the market. [.N]

* After hours, copper prices moved into positive territory when General Motors announced a 2009 production ramp up. [ID:nWNBB6981]

* "Along with that you have a ramp up in auto production, last week and now General Motors is talking about upping production, and that lent support to copper," said Smith.

* Earlier, copper slipped off session highs when U.S. housing and inflation data showed surprising declines. [ID:nN17348766] [ID:nN13PI1]

* Despite the weak data, the downside was limited. Many investors had unloaded riskier assets on Monday and many copper sellers already rid of their long positions - traders.

* As long as a prior low at $2.6980 a lb for September copper holds, copper should remain in a sideways pattern - traders.

* "Instead of looking like we were entering a corrective phase on Monday, it now looks like we are just going to enter a consolidative phase as long as we can hold support," - Smith.

* London Metal Exchange warehouse stocks were drawn down by 1,300 tonnes to 292,750 tonnes on Tuesday. [LME/STX1]

* COMEX copper warehouse stocks fell by 49 short tons to 53,250 short tons as of Monday. [CMWSU]

* LME copper for three-months delivery MCU3 firmed to $6,080 a tonne at Tuesday's kerb close, up slightly from Monday's finish at $6,050 a tonne. (Reporting by Carole Vaporean, Editing by Marguerita Choy)