BS: Copper Gains Most in Two Weeks on Report China’s Exports Surged
By Anna Stablum and Millie Munshi
June 9 (Bloomberg) -- Copper gained the most in two weeks after reports signaled robust growth in China, the world’s biggest metals buyer.
Exports jumped about 50 percent in May, and new loans totaled 630 billion yuan ($92.3 billion), Reuters reported. The Reuters/Jefferies CRB Index of 19 commodities rose as much as 1.4 percent. Before today, copper dropped 17 percent this year on concern the global economic recovery is slowing.
“The big news for commodities today is the Chinese export numbers,” said Matthew Zeman, a trader at LaSalle Futures Group in Chicago. “This is a very good sign for the global recovery, and it’s demonstrating that the problems in Europe aren’t having a dramatic impact on the rest of the world.”
Copper futures for July delivery advanced 9.7 cents, or 3.5 percent, to $2.8765 a pound at 11:27 a.m. on the Comex in New York. A close at that price would be the biggest gain for a most-active contract since May 24.
Forecasts from economists surveyed by Bloomberg indicated 600 billion yuan of new loans in China and a 32 percent increase in overseas shipments. Reuters cited three unnamed people who said a government official quoted the higher figures at an investor conference.
Prices also rose as Federal Reserve Chairman Ben S. Bernanke said the central bank will act as needed to aid financial stability and economy growth. The impact of the European crisis on U.S. growth is “likely to be modest,” he told a congressional committee.
Quarterly Loss
“This is only a market correction that will not dent economic growth on a global basis,” Michael Jansen, an analyst at JPMorgan Securities Ltd. in London, said in a report yesterday. “We maintain our positive medium-term outlook for commodities.”
Copper is heading for its first quarterly loss since 2008 on concern that sovereign-debt problems in Europe will slow economic growth. Before today, prices were down 22 percent since March 31.
“Europe remains a very big wild card,” Zeman of LaSalle said. “Any news that shows that situation is getting worse could undermine the rally.”
On the London Metal Exchange, copper for delivery in three months added 2.5 percent to $6,321 a metric ton ($2.87 a pound). Nickel, lead, tin, zinc and aluminum prices also gained.
--With assistance from, Li Yanping in Beijing. Editors: Michael Arndt, Patrick McKiernan.
To contact the reporters on the story: Anna Stablum in London at astablum@bloomberg.net; Millie Munshi in New York at mmunshi@bloomberg.net.
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net.
