NEW YORK, April 19 (Reuters) - Copper futures on the Chicago Mercantile Exchange (COMEX) fell on Wednesday, failing to extend Tuesday's rally, as the dollar rose, weighing on copper prices.
As of the close, copper futures rose by 5.05 cents to 6.15 cents, of which the most actively traded May 2023 copper closed at $4.081 per pound, up 6.15 cents or 0.43% from the previous trading day.
May copper traded in a range of $3.984 to $4.088.
Copper has fallen three times in the past four sessions.
The U.S. dollar index rose about 0.2 percent on Wednesday, acting as headwinds for copper prices, as a strong greenback means the dollar-priced metal is more expensive for buyers holding other currencies.
COMEX copper (near-term contract) is down 0.79% so far this month and is still up 7.00% so far this year, mainly due to market expectations of an improving outlook for China's economic growth and metal demand. Demand for copper, a metal widely used in power, construction and transportation, is expected to pick up as manufacturing activity in China recovers. Closing prices on Wednesday were still 12.42% below a year earlier and 17.39% below their all-time peak in March 2022.
Copper futures on COMEX fell by 14.58% in 2022, as the outlook for global economic growth is worrying, and high inflation has prompted central banks in Europe and the United States to actively raise interest rates to curb inflation, which has exacerbated the risk of economic recession. In the medium to long term, the green transition of the global economy and electrification are helping to boost additional demand for the metal, which is widely used in the power and construction industries, while copper mine production is at risk of disruption.
The most actively traded May 2023 copper contract on the Shanghai Futures Exchange closed down 170 yuan at 69,600 yuan a tonne on Wednesday. Bonded copper futures for June 2023 on the Shanghai International Energy Exchange (INE) fell 160 yuan to 61,860 yuan a tonne.
On Wednesday, the trading volume of COMEX copper futures was 89,555 lots, compared with 96,388 lots in the previous trading day; the volume of short positions was 206,216 lots, compared with 210,928 lots in the previous trading day.
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