Chinese copper futures ended down in thin trade on Monday, pressured by a stronger dollar, as market holidays in London and New York kept trading muted in Shanghai. The most active July contract ended at 31,020 yuan ($3,748), down 140 yuan from Friday's close. Trading volume fell to 91,836 lots from 123,018 lots on Friday. The euro weakened against the dollar after French voters rejected a new European Union constitution. A stronger dollar depresses commodity demand by making commodities more expensive to holders of other currencies.
Domestic spot copper prices rose to 34,000 to 34,350 yuan, recovering from losses on Thursday and Friday. Data released by the exchange on Friday showed warehouse inventories up by 1,392 tonnes at 28,411 tonnes, but inventories remain less than one-fourth what they were in March of 2004.
Stronger spot copper prices caused a brief rally in prompt futures in mid-afternoon trading. June copper ended down 10 yuan at 32,480 yuan. Benchmark three-month copper on the London Metal Exchange closed on Friday at $3,076 a tonne, $12.50 lower than when Shanghai trading closed on Friday.
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