April 8, 2008 / 2:24 PM / 11 years ago

US copper down at open as investors cash in at $4

NEW YORK, April 8 (Reuters) - U.S. copper futures at the New York Mercantile Exchange’s COMEX division fell as much as 2.9 percent early Tuesday as investors booked profits after the market’s run to $4.00 a lb on Monday.

NOTE: For detailed report click on [MTL]

* Active May copper HGK8 was down 7.25 cents or 1.8 percent at $3.9070 per lb by 10:11 a.m. EDT (1411 GMT). Range $3.8640 to $3.9665.

* Futures volumes estimated at 9,526 lots by 9:00 a.m.

* A lack of follow-through buying in Shanghai overnight after Monday’s strong move to the upside takes some wind out of the red metal’s upside momentum - analyst.

* Technical business cited as market fails to hold the psychological $4.00 level - analyst.

* Market likely set to drift between $4.00 and $3.50, near-term - trader.

* Potential supply disruptions in Chile, Mexico, and Zambia due to risk of renewed strike action and power restrictions underpin market.

* Chilean subcontract workers ready to launch new strikes if top copper producer, Codelco, does not meet their demands for better working conditions. [ID:nN07199747]

* Supply-side risks remain at Grupo Mexico’s (GMEXICOB.MX) Cananea copper pit. [ID:nN01279027]

* London Metal Exchange-monitored warehouse stocks down 1,100 tonnes at 115,050 tonnes <LME/STX1>, standing at around two days of global consumption.

* COMEX stocks were flat at 11,931 short tons on Monday.

* This week’s annual CESCO copper conference gets under way in Chile, as copper producers, consumers, and traders gather to discuss conditions in the copper market.

* Copper under additional pressure as U.S. pending home sales index for February falls 1.9 percent to its lowest level since series began in 2001. [ID:nN08350184]

* Codelco sees copper prices staying on average above $3 per pound in 2008 due to strong Chinese demand. [ID:nN0725669]

* A seasonal pick-up in Chinese consumption in the second quarter may not materialize as high prices and deteriorating markets restrict end-user demand. [ID:nSP295157]

* Chile’s copper output to rise 5.5 percent in 2008 to about 5.9 million tonnes - SONAMI. [ID:nN07171187]

* Copper for delivery in three months on the London Metal Exchange MCU3 last at $8,577.50 a tonne, down $152.50 from Monday’s close. (Reporting by Chris Kelly; Editing by John Picinich)

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