Copper Steady In Pre-Market

Copper traded comfortably in firmer levels early on Friday following Thursday's strong rally, but traders said they expected overwhelmingly bullish sentiment to be countered by bouts of forward selling and profit taking.

A fresh 11-1/2 month high of $2,488 per tonne was touched briefly in the pre-market before three months copper eased back to around $2,475.

Prices were nevertheless up from Thursday's strong kerb close of $2,463 and cash/threes backwardation was steady at a tight $90/$100.

Business was coming in fits and starts as copper probed the upside, traders said. "It's pretty quiet this morning - it has its flurries and then quietens down," one said. "I'm very friendly towards copper, but things are going to get more difficult in the $2,480-2,520 area." Still, the market was gearing up for an attempt to hurdle the psychological $2,500 level, with initial support pegged at $2,490, traders said.

A 2,400-tonne drawdown in LME stocks also suggested further upside attempts. However, end-of-week profit-taking and forward selling by producers was expected to counter any fresh speculative interest. Another trader noted that positions would be taken ahead of Monday.