Copper fell on Friday near 2 percent as inventories in London and Shanghai showed large increases and investors speculate demand may be weakening.
Stockpiles monitored in the London Metal Exchange boosted 10 percent or 11,150 metric tons to 121, 275 metric tons, the largest increase since August 2005. Copper stockpiles in the Shanghai Futures Exchange increased 4,646 metric tons to 51,119 according to data released on Friday in China.
Comex inventories were steady at 10,827 short tons according to the latest data released late Thursday.
Copper futures for July delivery dropped 7.1 cents or 1.87 percent to $3.7165 a pound on the Comex division of the New York Mercantile Exchange. The metal slumped after sub contractor workers voted to end a strike in Chile's Codelco that lasted for 20 days halting production of copper significantly.
State-owned Codelco will restore operations in three mines that were closed during the strike. The company is the largest producer of copper in the world.
Investors are aware of Peruvian mining unions who agree to protest next week and represent threats of a strike against the miners in Peru. The country is the third-largest copper producer behind the United States.
Copper futures for delivery in three months fell $133.50 or 1.56 percent to $8,400 a metric ton in the London Metal Exchange.