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Copper settles

with losses

NEW YORK: COMEX copper settled lower, continuing its consolidation of last week's strong gains, market sources said on Tuesday.

May copper ended 1.05 cents weaker at 121.70 cents a lb, traded from 123.20, matching Friday's five-month high, to 121.60. Spot April went out 0.45 weaker at 123.25 and July was off 0.65 at 119.50. The deferred months were off 0.75 to 0.10.

Several traders expected a test of support at 120 in the May contract, although the market was seen well-supported.

Volume was estimated at 13,000 lots, including 1,776 switches as players rolled positions forward into July from May, which enters notice period next week.

Traders said the modest decline in LME stocks overnight of 1,100 tonnes was generally positive but not unexpected.

They also noted nervousness about labor talks at Codelco's Chuquicamata division helping to underpin the market.

Management at the Chilean mine is scheduled to deliver its final contract offer today to trade unions, which will have five days to consider the offer.

Several market observers expected copper prices to resume their recent uptrend after the current consolidation period has run its course.

"I think we're remaining in the uptrend," said Richard Hirsch of Deutsche Sharps Pixley Metals. "We're seeing some good business in the United States, that's clear."

He argued that the strong demand outlook, combined with bullish chart factors and the possibility that large short positions still remained in the market, suggested further gains ahead.-Reuter