Copper recovered on Friday from a one-month low, underpinned by a surprise decline in global inventories and bets demand will recover in the medium to long term. Copper for three-months delivery MCU3 on the London Metal Exchange traded at $5,980 a tonne in official rings from Thursday's close of $5,950. The metal, used in power and construction, hit $5,900 overnight, a level not seen since Aug 19. "I think copper has managed to bounce a little bit partly because if you look at (Shanghai) stocks data the market was expecting a build or at least not such a draw," said Jesper Dannesboe, senior commodity strategist at Societe Generale. He added: "Fudamentals are relatively good medium term. That's why everyone is long in copper but it's a no brainer that they're going to ease those positions given China restocking is coming to an end and global warehouse stocks are rising." Data out earlier showed copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 5.3 percent from a week ago, after peaking the prior week at their highest in more than five years. [ID:nBJD003086] In London, data showed stocks down 175 tonnes, but at 340,700, they are still over 30 percent above mid-July levels. Copper also gleaned support after G20 leaders pledged to keep stimulus measures in place until the recovery is more entrenched. This weighed on the dollar, making dollar-priced metals cheaper for non-U.S. investors. [MKTS/GLOB] [USD/] On Thursday, investors flocked to the safety of the dollar away from risky assets like copper after the world's major central banks jointly announced steps to trim cash injections into their banking systems. In addition, data from the U.S. showed sales of previously owned homes unexpectedly fell for the first time in four months in August. [ID:nN24343088] "We're bound to recover at some point but for the next six to 12 months anything can happen. Demand isn't great and there is excess material out there," said an LME-based trader. Next on investors' radar will be the U.S. durable goods orders and new home sales data due out later in the session.

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