Dollar, demand worries drag US copper futures down
NEW YORK - U.S. copper futures ended lower on Monday, after hitting their lowest levels in nearly two weeks, as a steadier tone in the dollar and worries about recent supply builds and moderating import levels in China combined to drag prices down for the fourth straight session.
* Copper for December delivery HGZ9 shed 4.20 cents, or nearly 1.5 percent, to settle at $2.8045 a lb on the New York Mercantile Exchange's COMEX division.
* Range from $2.8350 to $2.7625, the contract's lowest level since Sept. 2.
* Head and shoulders top formation on the charts points to a short-term test of $2.60 a lb - CitiFX strategists.
* COMEX estimated final copper volume at 21,280 lots.
* Over-sold conditions in the U.S. dollar seen as a main trigger for extended correction in copper prices - Frank Lesh, broker and futures analyst with Future Path Trading in Chicago.
* The dollar held gains against a basket of currencies .DXY amid concerns about trade dispute between the United States and China.
* Market sentiment weighed down by Friday data showing Chinese imports of unwrought copper and products down 20 percent in August from July.
* China's net copper imports will continue to decline. Will remain fairly high on a historical basis due to very robust demand from fabricators for demand of semi-manufactured products - Catherine Virga, senior base metals analyst with CPM Group in New York.
* London Metal Exchange (LME) warehouse stocks added another 1,475 tonnes at 319,800 tonnes on Monday.
* London stockpiles are up 25 percent since early July.
* Copper inventories in warehouses monitored by the Shanghai Futures Exchange jumped 12 percent to a two-year high at 97,396 tonnes.
* COMEX copper warehouse stocks climbed 702 short tons to 53,306 short tons on Friday.
* COMEX copper noncommercial net short position trimmed to 2,248 lots in week ended Sept. 8, from 3,548 lots short the week prior. Open interest eased to 118,148 contracts from 119,527 contracts during the week of Sept. 1.
* LME copper for three-months delivery MCU3 ended down $110 at $6,140 a tonne. (Reporting by Chris Kelly; Editing by John Picinich
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