Early US copper off its session lows on jobs data
NEW YORK, Aug 1 (Reuters) - U.S. copper futures fell before steadying at lower levels early Friday after an unexpected smaller decline in U.S. nonfarm payrolls in July eased some concerns about the health of the economy.
NOTE: For detailed report, click on [MET/L].
* Copper for September delivery HGU8 was trading down 8.70 cents at $3.5745 a lb by 10:29 a.m. EDT (1429 GMT) on the the New York Mercantile Exchange's COMEX division.
* The morning range was from $3.54 to $3.6675.
* By 10 a.m. EDT, COMEX estimated futures volumes at 11,981 lots.
* Copper works of off its morning lows after data showed U.S. employers eliminated 51,000 non-farm jobs in July against market expectations for a 75,000 decline in payrolls. [ID:nN01429062]
* "People really thought the non-farm payrolls number was going to be bad number. So not only was the latest number 20-25,000 better-than-expected but the prior two months were revised up. So it's not a good number but it's not as bad as expected." - Cantor Fitzgerald & Co's. U.S. Market Strategist, Marc Pado.
* In electronic business before the COMEX open, copper faced strong selling pressures from another large build in London warehouse stocks and data that showed China's manufacturing sector contract in July for the first time since the 2005 launch of an official monthly survey. [ID:nPEK202380]
* "There is still pressure from the demand side, reflective of the build we have seen in LME stock levels and disappointment over the failure to respond to the Shanghai stock figures." - Archer Financial Services' analyst, Steve Platt.
* Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 10 percent to 36,839 tonnes in the week ended Thursday from 41,090 tonnes the previous week.
* "Some of that probably reflects anticipation of some falling off in demand and a feeling that maybe the Chinese do not need as much stock as maybe they did before." - Platt.
* Copper underpinned by data showing manufacturing activity in the U.S. was better than expected in July.
* The Institute for Supply Management said its index of national factory activity edged lower in July to 50.0 from 50.2 in June, and against forecasts for a result of 49.3.
* A separate report showed U.S. construction spending drop a steeper-than-expected 0.4 percent in June as private home building touched its lowest rate in nearly 7 years.
* London Metal Exchange (LME) warehouse stocks rose by 2,250 tonnes to 144,650 tonnes on Friday.
* COMEX copper stocks dropped 515 short tons to 6,323 short tons on Thursday.
* LME copper for delivery in three-months MCU3 last traded at $7,925 a tonne, down $135 from Thursday's close. (Reporting by Chris Kelly; Editing by John Picinich)
