Copper futures ended with losses on Monday as inventories in the London Metal Exchange rose the most in two months easing concerns that demand may outpace supplies.
London Metal Exchange copper stockpiles rose by 1,500 metric tons or 1.2 percent to 122,725 tons. This is the highest increase since mid-March. According to Reuters, since the start of the year stockpiles in London were down 38 percent.
Copper futures for July delivery fell 5.1 cents or 1.33 percent to $3.7755 a pound on the Comex division of the New York Mercantile Exchange.
Copper prices have gained significantly since 2001 from increasing demand from emerging markets like China, but Chinese imports of unwrought copper have declined 17 percent in the first fourth months of 2008 due to high prices.
In April, imports of the red metal fell 19 percent from a year earlier, according to China Customs Office.
However, Investors speculate demand for copper in China will boost after the earthquake left a vast re-construction work in cities, factories and power networks.
Supporting prices today, the dollar rose decreasing demand for commodities which are commonly purchased to compensate for inflation.
The dollar index which tracks the performance of the U.S. currency against six major currencies including the yen and euro, rose 0.5 percent.
Copper futures for July delivery rose $145 or 1.74 percent to $8,498 a metric ton in the London ICE Futures Exchange.