US copper closes lower in extension of pullback
NEW YORK, May 14 (Reuters) - U.S. copper futures settled at their lowest levels since late March on Wednesday as a steadier tone in the dollar and weaker demand signals from China, the world's leading metals consumer, held a two-week downtrend in place, traders and analysts said.
NOTE: For detailed report, click on [MET/L].
* Copper for July delivery HGN8 ended down 5.05 cents at $3.6810 a lb on the COMEX metals division of the New York Mercantile Exchange, its lowest level on a closing basis since March 25. Range from $3.6525 to $3.7435.
* By 1 p.m. EDT (1700 GMT), COMEX copper volumes estimated at 12,898 lots. Final volumes on Tuesday hit 13,318 lots.
* Open interest in the market fell by 574 lots to 97,799 contracts open as of May 13.
* Copper market pressured by profit-taking correction from recent record high at $4.2605, set on May 5 - Pioneer Futures trading analyst Scott Meyers.
* Market trading up against key support at $3.67-$3.68. Resistance seen at $3.75 to $3.80 - trader.
* Copper market loses some support from Monday's earthquake in Sichuan province, a region of China not associated with copper mining and smelting activity. [ID:nSP248483]
* China earthquake having an adverse impact on copper market's near-term outlook as resources directed to rescue effort. Longer term, may be a supportive factor - Archer Financial Services futures analyst Steve Platt.
* Chinese output of refined copper rose 22.7 percent in April to 329,400 tonnes - Chinese Bureau of Statistics. [ID:nBJE000055]
* Increased production levels in China no surprise. Reflect the turnaround of feed coming from the higher levels of imported scrap and concentrate over the past three months - RBC Capital Markets.
* A weaker trend in world currencies against the U.S. dollar provided additional softness in the copper market.
* Dollar firmed after benign U.S. consumer inflation in April supported views that the Federal Reserve's interest-rate-cutting campaign was almost over.
* U.S. consumer prices rose by 0.2 percent in April, less than the 0.3 percent gain Wall Street analysts polled by Reuters were expecting, and after a 0.3 percent advance in March. Core prices, which exclude volatile food and energy, were up just 0.1 percent, half the increase analysts had forecast. [ID:nL143685]
* Potential supply disruptions in Peru and Chile continued to offer underlying support.
* Peruvian labor leaders suspended a nationwide mining strike for 15 days on Friday days before a summit of European and Latin American leaders in the Andean country. [ID:nN09477268]
* Meanwhile, subcontract workers at Chile's Codelco said the company must officially recognize their demands at the negotiating table if it is to avoid further protests. [ID:nN13405549]
* Chilean President Michelle Bachelet has given her word that Codelco, the state copper miner, will adhere to accords that ended a three-week strike that shut three of the company's five divisions for parts of last month. [ID:nN14503601]
* London Metal Exchange copper warehouse stocks fell by 350 tonnes Wednesday at 121,425 tonnes. COMEX warehouse copper stocks were flat at 10,827 short tons on Tuesday.
* LME copper for delivery in three months MCU3 settled at $8,120 a tonne, down $120 from Tuesday's close. (Reporting by Chris Kelly; Editing by Christian Wiessner)
