US copper ends up in recovery rally ahead of Fed

NEW YORK, June 24 (Reuters) - U.S. copper futures closed sharply higher on Wednesday, extending a bounce from the prior session's three-week low, as an unexpected jump in durable goods orders lifted prices ahead of a Federal Reserve interest rate decision and policy statement. For detailed report on global copper markets, click on [MET/L] * Copper for September delivery HGU9 advanced 6.90 cents, or 3.1 percent, to settle at $2.2810 a lb on the New York Mercantile Exchange's COMEX division. * Session range from $2.1740 to $2.3020. * On Tuesday, the benchmark September contract hit a session trough at $2.1235, its lowest level since May 28. * COMEX estimated futures volume at 19,212 lots by 12 p.m. (1600 GMT). Final volume on Tuesday at 29,496 lots. * Open interest slipped 3,830 lots to 109,536 contracts open as of June 23. * Copper was driven higher by economic prospects after data showed U.S. durable goods orders unexpectedly jump 1.8 percent in May. [ID:nCAT002709] * Copper market shrugs off data showing sales of newly built U.S. single-family homes slipped in May. [ID:nN27EWHOME] * Strong durable goods orders a better sign of economic health than housing - Sterling Smith, analyst for Country Hedging Inc in Inner Grove Heights, Minnesota. * Improved economic outlook reinforced by the Organization for Economic Cooperation and Development. [ID:nLN270829] * Market attention turned to policy statement from the Federal Reserve due out at the close of the two-day meeting of its Federal Open market Committee, at about 2:15 p.m. (1815 GMT). * Market awaits Fed's views on how the economic recovery is shaping up and how long the U.S central bank will keep rates near zero to foster growth. * Speculation world's top copper consumer China will curtail its near-term purchases of the industrial metal weighing on market sentiment. * China's imports of refined copper hit a record 337,230 tonnes in May, but apparent consumption fell 3.5 percent from the previous month, reflecting increased stockpiles and signaling lower inflows ahead. [ID:nHKG80221] * The pace of Japanese exports slowed in May as shipments to China deteriorated and U.S. demand remained weak, adding to a gloomy outlook. [ID:nT107592] * London Metal Exchange warehouse stocks <LME/STX1> were down 1,225 tonnes to 275,050 tonnes on Wednesday. * Canceled warrants -- metal set to leave LME warehouses -- eased to 17,475 tonnes as of Tuesday from 17,750 tonnes the previous session. * COMEX copper stocks CMWSU lost 165 short tons at 60,060 short tons as of Tuesday. * LME copper for three-months delivery MCU3 closed up $250 at $5,055 a tonne.