US Copper Hits 4-1/2 mth top, Stalls on Sentiment

NEW YORK, Sept 17 (Reuters) –

U.S. copper futures ended up
after touching a 4-1/2 month peak on Friday, with reassuring
comments from China's central bank to keep monetary policy
loose and another sharp drop in London warehouse stocks fueling
the charge.
 

But momentum stalled and investors locked in profits after
a worsening U.S. consumer sentiment reading rekindled some
economic growth jitters.
 
Copper for December delivery HGZ0 rose 2.85 cents, or
0.82 percent, to settle at $3.5220 per lb on the COMEX metals
division of the New York Mercantile Exchange.
 Range from $3.4860 to $3.5525, which marked the highest
level for the fourth position contract since April 26.
 

For the week, benchmark December contract up over 3
percent, its biggest gain since late July.
 

COMEX estimated final copper futures volume at 27,027
lots, in line with Thursday's count at 26,917 lots. IZQI
 

Open interest grew by 1,943 lots to 142,966 contracts as
of Sept. 16.
 

Copper buoyed by easing fears about tighter Chinese
monetary policy, which could adversely affect demand prospects
in the world's biggest metals consumer - analysts.

Copper momentum grounded by data showing U.S. consumer
sentiment unexpectedly worsened in early September to its
weakest level in more than a year.

Copper supported by tighter supply/demand balance
reflected in another large withdrawal in London Metal Exchange
(LME) copper warehouse stocks, down 2,950 tonnes to 384,200
tonnes on Friday. 
 

Copper inventories in warehouses monitored by the
Shanghai Futures Exchange rose 0.2 percent from a week earlier
- exchange data. 
 

COMEX copper warehouse stocks down 477 short tons to
90,372 short tons as of Thursday.

LME copper CMCU3 ended up $20 at $7,720 per tonne, after hitting a 4-1/2 month top at $7,810.