By Millie Munshi (Corrects number of months in headline and first paragraph.) May 21 (Bloomberg) -- Copper prices jumped the most in three months on speculation that demand will remain ample in China, the world’s biggest metal user. Inventories monitored by the Shanghai Futures Exchange fell for a third straight week, the longest slide since October. China imported 309,772 metric tons last month, the second- biggest amount since June, the government said. Before today, copper dropped 6 percent this week on European debt concerns. “Prices had gotten overextended on the downside, and we’ll see copper move up from here,” said Lannie Cohen, the president of Capitol Commodity Services Inc. in Indianapolis. “It’s still about China and focusing more on the situation there.” Copper futures for July delivery climbed 12.3 cents, or 4.2 percent, to $3.0675 a pound at 10:49 a.m. on the Comex in New York. A close at that price would be the biggest gain for a most-active contract since Feb. 16. Before today, copper dropped 12 percent this year, partly on concerns that China’s government will act to cool its economy and damp metal demand. Yesterday, the price touched $2.9005, the lowest level since Feb. 9, as global equities tumbled. “Until we see things settle down in Europe, things are going to be volatile for copper,” Cohen said. “The lows in the market are in, but there are still some hurdles.” Copper for delivery in three months rose 2.6 percent to $6,783 a metric ton ($3.08 a pound) on the London Metal Exchange. Aluminum, tin, zinc, lead and nickel prices also gained. To contact the reporter on the story: Millie Munshi in New York at mmunshi@bloomberg.net.

Source