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Copper higher

NEW YORK: Comex copper settled higher for the third day running, closing almost six cents up on the week after finally shaking off its recent trading range.

"I think we got a little exaggerated, and trade selling came in over 120.00 cents basis May, but it's still firm," said analyst James Steel of Refco. "We might be looking for another LME drawdown on Tuesday but the market is divided about that. Copper got some of the fever from the other commodities today."

Part of the mid-week short-covering rally was fuelled by a widely-expected sharp dip in LME stocks - they fell over 12,000 tonnes, largely in Singapore, sparking optimism about renewed Asian and in particular Chinese consumption.

Meanwhile, traders said the U.S. physical market is holding up well, with cathode and scrap markets fairly tight and premiums on cathode firming up a touch.

Traders continued to monitor the protracted labor talks at Chuquicamata in Chile, the world's largest copper mine. A rail strike in Zambia and Tanzania entered its fourth day, marooning copper and cobalt exports from Zambia.

Comex copper stocks Friday rose 237 short tons to 14,161 short tons, the first movement for about two weeks.-Reuter