US copper futures settled at a 2-1/2-month low below $3.10 per lb on Thursday as investors continued to shun risk in the face of a stronger dollar and fears over the effects of tighter monetary policy in China. Benchmark copper for March delivery dropped 12.45 cents, or nearly 4 percent, to close at $3.0980 per lb on the New York Mercantile Exchange's COMEX division.

Lowest level on a settlement basis since November 13. Range from $3.0940 to $3.2435. COMEX estimated final futures volume at 47,318 lots in line Wednesday's final count at 45,892 lots.

Copyright Reuters, 2010