BLBG: Copper Heads for Weekly Increase, Best Quarter Since June 2006
Copper, the best performer on the London Metal Exchange this year, headed for a second weekly gain and best quarter since June 2006, amid optimism demand may improve on government measures to stabilize their economies.
Copper, up 35 percent this year, overtook lead yesterday as the exchange’s best performer on better-than-expected U.S. economic data and after People’s Bank of China Governor Zhou Xiaochuan said China is showing signs of recovery. China and the U.S. are the world’s two largest users of industrial metals.
“Copper has so many factors going for it since the beginning of the year, from record Chinese imports and speculation of China’s state buying, to improving economic data and the rally in global equities,” Li Jingyuan, an analyst at Haifu Futures Co., said from Shanghai today.
Copper for three-month delivery on the London Metal Exchange rose as much as 2 percent to $4,168 a metric ton, the highest since Nov. 10, and traded at $4,145 a ton at 10:24 a.m. Singapore time. The metal is up 4.8 percent this week and headed for its best month since April 2006, gaining 20 percent.
Copper for June delivery on the Shanghai Futures Exchange gained as much as 3.6 percent from the previous settlement price to 34,580 yuan ($5,062) a ton, before trading at 33,990 yuan, on pace for a second weekly increase, best month since April 2006 and best quarter since at least 2000.
Economic Recovery
“Leading indicators are pointing to recovery of economic growth,” Zhou said in an article on the central bank’s Web site yesterday. The government “has taken prompt, decisive and effective policy measures, demonstrating its superior system advantage when it comes to making vital policy decisions,” he said.
U.S. durable goods orders in February unexpectedly rose while U.S. home sales advanced last month from a record low, the Commerce Department said this week. Copper is an indicator for the world economy and sets the pace for other industrial metals because an average of 400 pounds (181 kilograms) is used in homes and 50 pounds in cars, according to the Copper Development Association.
Among other LME-traded metals, aluminum rose 0.8 percent to $1,455 a ton, while zinc fell 0.3 percent to $1,344 a ton. Nickel was little changed at $9,735 a ton, tin rose 0.8 percent to $10,225 while lead hadn’t traded as of 11:12 a.m. in Singapore.
