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Copper futures in New York climbed to a one-week high at the open on Monday, buoyed by firmer overseas prices and another draw-down in inventory levels, sources said.

"London is up about $100 (a tonne), so we are probably getting a little support from that. But, other than that, it is really quiet. There is nothing behind this move ... we're stalling at the high at $3.45," said one floor dealer.

Copper for December delivery rose 5.05 cents, or 1.5 percent, at $3.4390 a lb. on the New York Mercantile Exchange's COMEX division by 10:24 a.m. EDT (1424 GMT). Trading ranged from $3.3875 to $3.45, its best level since Oct. 2.

Spot October gained 4.65 cents to $3.43, just off its morning peak at $3.44.


Volume at 10 a.m. was estimated at 3,000 lots.

Analysts predicted thin, choppy price action in the copper market this week due to the London Metal Exchange Week and Monday's Columbus Day holiday in the United States.

During LME Week, metal producers, consumers, traders, and analysts attend a series of meeting, seminars, and parties to discuss different topics in the market.

"A U.S. holiday today, coupled with LME Week this week, saw players cover short positions as continued falls in stocks and tight supply were seen as price supportive in the short-term," said John Reade, metals analyst with investment bank UBS.

London Metal Exchange warehouse stocks fell by 350 tonnes on Monday to 113,700 tonnes -- less than three days worth of global usage. COMEX stocks increased 216 short tons to 21,592 tons on Friday.

In industry news, workers at Chile's Andina copper division, owned by mining giant Codelco, agreed to a new three-year contract that includes a 3 percent wage increase and two bonus payments worth about $12,000.

Strong domestic demand has powered a recovery of Italy's copper and alloy products sector this year,, despite high and volatile metals prices, but its future depends on competing with China, industry leaders said.

Meanwhile, with analysts seeing world prices of base metals trading lower next year, price-sensitive Chinese copper users may develop a strong appetite in 2007, after taking a breather this year.

The latest weekly Commitments of Traders data issued by the Commodity Futures Trading Commission showed the net noncommercial short position in COMEX copper futures grew to 12,293 lots in the week ended Oct. 3, from 9,601 lots the previous week.


Open interest increased to 69,400 lots for the week, against 67,977 lots in the prior week.

LME three-months copper traded at $7,540 a tonne, up $80 from Friday's kerb close.