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US copper ends down as EU debt woes cloud recovery

Wed May 19, 2010 2:33pm EDT

NEW YORK, May 19 (Reuters) - U.S. copper futures ended lower on
Wednesday, as investors continued to dump risk amid persistent debt
concerns in Europe and after Germany's move to ban short-selling of some
securities added to the region's uncertain economic outlook.

For detailed report on global copper markets, click on [MET/L]

* Copper for July delivery HGN0 dropped 7.15 cents, or 2.4 percent,
to settle at $2.9595 per lb on the New York Mercantile Exchange's COMEX

* Range from $2.9265 to $3.0135.

* COMEX estimated copper futures volume at 44,083 lots by 1 p.m. EDT
(1700 GMT). Final volume on Tuesday hit 43,402 lots.

* Open interest fell by 6,561 lots to 128,554 contracts open.

* Copper down in sympathy with broader market amid uncertain structural
problems in Europe. Size and scope of problems seen keeping pressure on
copper - Shawn Hackett, president of Hackett Financial Advisors, Inc. in
Boynton Beach, Florida.

* Germany announced Tuesday a ban on some high-risk bets that prices of
bonds and stocks will, in an attack on financial speculation on which it
blames much of the euro zone's debt crisis. [ID:nSGE64I073]

* Germany's actions creating uncertainty in market and fanning investor
worries they will not be able to hedge their European holdings - Dahlman

* The new rule places more pressure on euro as investors may choose to
sell the currency given the fewer alternatives to wage bearish bets -
Dahlman Rose.

* Euro rallied on rumors of potential meetings or European Central Bank
intervention. [USD/]

* Economic data showed drop in U.S. consumer prices for first time in a
year, pointing to a lack of price pressure as economic recovery gathers
steam. [ID:nN19229663]

* Operations at Chile's giant Collahuasi copper mine returned to
normal, as subcontractor protest that disrupted output waned on its 12th
day. [ID:nN18140504]

* Global copper market in surplus of 135,000 tonnes in the first
quarter of this year, versus a 146,100-tonne surplus in same period in 2009
- the World Bureau of Metal Statistics (WMBS). [ID:nLDE64I0YB]

* London copper stocks <0#LME-STOCKS> fell by 925 tonnes to 482,225
tonnes on Wednesday.

* COMEX copper stocks held steady at 101,242 short tons as of Tuesday.

* LME copper for three-months delivery CMCU3 last quoted at
$6,500/6,505 at the close from Tuesday's close at $6,700.

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