US copper futures end easier, outlook remains dim
NEW YORK, Aug 7 (Reuters) - U.S. copper futures settled down a shade on Thursday after a consolidation bounce from this week's plunge to six-month lows failed to hold, giving way to the market's overall downtrend.
NOTE: For detailed report, click on [MET/L].
* Copper for September delivery HGU8 ended down 0.55 cent at $3.4180 a lb on the the New York Mercantile Exchange's COMEX division.
* The session range spanned from $3.4095 to $3.4655.
* On Tuesday, the benchmark September contract sank to its lowest price point since Feb. 7, at $3.3765.
* COMEX estimated final futures volumes at 17,689 lots, compared with Wednesday's official tally at 21,988 lots.
* Open interest dropped 2,162 lots to 108,043 contracts open as of Aug. 6.
* Copper still in a mode of consolidation following this week's sharp technical sell-off that erased more than 17 percent of the market's value in a span of four weeks - trader.
* "Any kind of bounce that we get right now in the metals will be a consolidation bounce in the downtrend," said Ralph Preston, futures analyst with HeritageWestFutures.com in San Diego, California.
* Technically, initial support seen at Tuesday's session low at $3.3765, followed by $3.31 - Preston.
* Copper supported by economic data showing an unexpected rise in the U.S. pending home sales index for June.
* The pending home sales index rose 5.3 percent in June, compared with expectations of a 1.0 percent fall. [ID:nWEQ000091].
* Copper's path of least resistance to the downside due to a weaker technical picture and a dim global demand outlook, highlighted by a limited Chinese presence in the market in front of the Beijing Olympic Games.
* Copper under additional pressure from steady builds in London Metal Exchange (LME) warehouse stocks.
* London warehouses saw another 775 tonnes enter on Thursday, bringing total inventory levels to 151,100 tonnes.
* COMEX copper stocks declined by 262 short tons to 5,838 short tons on Wednesday.
* In industry news, Brazil's Vale (VALE5.SA) RIO.N, the world's largest iron ore miner, plans to raise its investment budget to expand production of some products, including copper and coal, Chief Executive Roger Agnelli said on Thursday. [ID:nN07470532]
* Chile's state-owned Codelco, the world's largest copper producer, said on Wednesday it would exercise its options to buy two copper properties from Enami, the smaller government-run mining company. [ID:nN06518789]
* LME copper for delivery in three-months MCU3 closed up $50 at $7,665 a tonne from Wednesday. (Reporting by Chris Kelly; editing by Jim Marshall)
