US Copper Ends Firm; China Data Lifts Demand View

 NEW YORK, Sept 13 (Reuters) -

U.S. copper futures ended up
over 2 percent on Monday, buoyed by fresh signs of economic
expansion in top metals consumer China, that restored market
confidence and reinforced an improved global demand outlook for
the industrial metal.
 
Copper for December delivery HGZ0 jumped 7.25 cents, or
2.1 percent, to settle at $3.4790 per lb on the COMEX metals
division of the New York Mercantile Exchange.
 Range from $3.4130 to $3.4935.

COMEX estimated final copper futures volume at 20,725
lots, below Friday's count of 27,506 lots. IZQI

Open interest down 272 lots at 140,927 contracts as of
Sept. 10.
 
Copper rally driven by stronger-than-expected data from
world's top consumer China, suggesting further expansion
despite government efforts to clamp down on bank lending and
property speculation.

Industrial production number, if anything, suggests the
pace of the economy may have picked up a little bit entering
the third quarter - Peter Buchanan, commodities analyst and
senior economist at CIBC in Toronto.

China's refined copper production eased 0.3 percent in
August, a second straight fall from a June peak as raw
materials supplies fell.

Copper further supported by dwindling supply base, with
latest London Metal Exchange (LME) copper warehouse data
showing stocks drop 950 tonnes to 390,450 tonnes, down 30
percent since the middle of February.

Copper expected to extend summer rally as global market
surplus dwindles and chances of double-dip recession fade -
analysts.

COMEX copper warehouse stocks dropped 639 short tons to
93,429 short tons as of Friday, Sept. 10.
 
Money managers upped their net long positions in copper
futures for the week ended Sept. 7, adding 4,504 contracts to
the net total - data from the U.S. Commodity Futures Trading
Commission.
 
LME copper CMCU3 ended up $144 at $7,630 per tonne.