US Copper Ends at 1-Week Low on China Probe Fears

NEW YORK, Sept 9 (Reuters) –

U.S. copper futures closed at
their lowest levels in more than one week on Thursday, hit by
talk of a Chinese investigation into trading in the Shanghai
rubber market, which outweighed better-than-expected labor
market data.

Copper for December delivery HGZ0 sank 5.70 cents, or
1.6 percent, to finish at $3.4435 per lb on the COMEX metals
division of the New York Mercantile Exchange.

Lowest level on a settlement basis since Aug. 31.

Range from $3.3940 to $3.5020.

COMEX estimated final copper futures volume at 41,222
lots, up from Wednesday's final count of 32,768 lots. IZQI
Open interest up 1,118 lots at 138,197 contracts as of
Sept. 8.

COMEX copper tracks overseas losses after talk of Chinese
probe into trading on Shanghai rubber market slammed Chinese
commodity futures prices.

Fear investigation could spread to other commodity
sectors such as metals - traders.

Sentiment further undermined by Chinese demand worries
tied to further property tightening measures in the world's top
metals consumer - traders.

China concerns outweighed lower-than-forecast U.S.
jobless claims and trade deficit numbers that pointed to
brighter prospects for economic growth in the world's largest
economy. 

U.S. copper imports up for a fourth straight month in
July, pointing to healthier demand prospects in world's leading
economy.  London Metal Exchange (LME) copper warehouse stocks
dropped 1,125 tonnes to 393,375 tonnes, down from 6-1/2 year
highs at 555,075 tonnes in mid-February.

COMEX copper warehouse stocks went down by 386 short tons
at 94,435 short tons as of Sept. 8.

LME copper CMCU3 last bid at $7,554 a tonne in closing
kerb trades, versus $7,675 a tonne on Wednesday.