US copper rallies 10 pct on dollar, China stimulus
NEW YORK, Nov 10 (Reuters) - U.S. copper futures climbed more than 10 percent early Monday on the back of a weaker dollar and a multibillion dollar economic stimulus package in China, the world's leading metals consumer.
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* Copper for December delivery HGZ8 surged 14.50 cents, or 8.5 percent, to $1.8420 a lb by 10:34 a.m. EST (1534 GMT) on the New York Mercantile Exchange's COMEX division.
* The morning range from $1.7280 to $1.89.
* COMEX estimated futures volume at 9,797 lots by 10 a.m.
* Copper up in response to China's near-$600-billion economic stimulus plan to shore up the world's fourth-largest economy. [ID:nN09395080].
* The dollar slipped against a basket of currencies amid improved risk appetite and rallies in worldwide equity markets after news of the massive stimulus package. [USD/]
* Chinese stimulus plan more evidence that most of the world's leading economies have ditched lingering concerns over inflation to focus on the economic impact of the credit crunch - RBC Capital Markets.
* The G20 group of advanced and big emerging economies agreed on Sunday on the need for coordinated action to fight the financial crisis but left decisions on how to proceed to a leaders' summit next weekend. [ID:nN09403219]
* Copper supported by potential supply cutbacks from major miner Freeport-McMoran Copper & Gold Inc. (FCX.N)
* Freeport will reduce production from its Henderson primary molybdenum mine and defer the restart of the Climax molybdenum mine due to a recent decline in molybdenum prices.
* The company continues to review its copper mining operations and may also cut copper production in response to market conditions. [ID:nN10448637]
* Continued physical demand for copper, particularly from China, means there is no need to delay Chile's low-cost mining projects, despite a dramatic drop in prices - Chile Mine Minister Santiago Gonzalez. [ID:nPEK122658]
* Copper strength bucks ongoing bearish inventory data.
* London Metal Exchange-registered copper warehouse stocks jumped 6,050 tonnes on Monday, bringing total levels to 260,850 tonnes -- their highest since March 2004.
* COMEX copper stocks stood even at 9,891 short tons as of Friday.
* COMEX net speculative short position grew in the week ended Nov. 4. [ID:nN07452334]
* LME copper for three month delivery MCU3=LX rallied as high as $4,171.75 a tonne, up more than 11 percent from the close on Friday at $3,755. It was last trading at $4,055. (Reporting by Chris Kelly; editing by Jim Marshall)
