SHFE copper balances on inventories

Chinese commodity futures stabilized last week on positive unemployment data out of the US, though a projected supply surplus weighed on copper prices.

The most traded copper contract on the Shanghai Futures Exchange (SHFE), for June delivery, was flat last week, closing at 56,740 yuan ($9,130) per ton Friday.

Copper imports fell to their lowest level in 20 months, primarily due to the effects of the Spring Festival holiday, Reuters reported Friday.

Still, the drop indicated a dearth of demand seen elsewhere for the economic bellwether.

Stockpiles tracked by the London Metal Exchange (LME) grew Thursday to their highest level since June 2010, rising 1.5 percent overnight to 481,000 tons, according to commodity analysts at the Australian bank ANZ.

In addition, new copper supplies are expected to leave the global copper market with a surplus of 120,000 tons in 2013 as new mining projects open around the world, according to a Reuters poll. Earlier estimates predicted the market would have a 12,000 ton deficit this year.

The three-month LME copper contract surrendered a fraction of a percentage point to $7,749 per ton Friday, finishing the week up a little less than 0.4 percent.

An unexpectedly large drop in US unemployment claims Thursday helped hold Chinese commodity prices for the week. Jobless claims fell to 340,000, beating market expectations of 355,000, according to ANZ.

The figure indicated an improvement in the US labor market, which was supported by the US's monthly non-farm payrolls report released Friday. The report estimated the US added 236,000 jobs in February, according to the US Bureau of Labor Statistics.

The US dollar continued to strengthen for the third straight week, also putting pressure on commodity prices. The US Dollar Index, which weighs the dollar against a basket of other currencies, rose 0.8 percent Friday, to finish the week up about 0.55 percent.