BS: Copper Rises to 26-Month High as Chinese Manufacturing Expands
Oct. 1 (Bloomberg) -- Copper jumped to a 26-month high in New York after a report showed manufacturing accelerated in China, the world’s biggest consumer of the metal.
China’s purchasing manager’s index rose to 53.8 from 51.7 in August, signaling the fastest expansion in four months, a report from the country’s logistics federation and statistics bureau showed. Copper also rose today as the dollar fell to the lowest level since January against a basket of six major currencies.
“We are bullish longer term on copper,” said Evan Smith, who helps manage $2 billion at U.S. Global Investors Inc. in San Antonio. “China will be the biggest contributor to higher prices. Prices also get a lot of support from the dollar.”
Copper for delivery in December added 5.4 cents, or 1.5 percent, to $3.7055 a pound at 10:49 a.m. on the Comex in New York. Earlier, the price touched $3.722, the highest level since July 30, 2008. The metal is headed for a third straight weekly gain.
Inventories monitored by the London Metal Exchange fell for a fifth day to the lowest level since Nov. 3. Stockpiles are down 26 percent this year, on course for the first annual contraction since 2004.
“Copper is getting more difficult to find,” Smith said. “There are no significant sources of supply coming into the market.”
On the LME, copper for delivery in three months climbed $125.50, or 1.6 percent, to $8,139.50 a metric ton ($3.69 a pound).
Also in London, tin for three-month delivery added 3.1 percent to $25,000 a ton. Earlier, the prices touched $25,200, the highest level since May 16, 2008, and $300 below the record achieved on May 15 of that year.
Nickel climbed 1.7 percent to $23,800 a ton. The metal is headed for an eighth consecutive gain, which would mark the longest rally since April 2007.
Aluminum, zinc and lead also rose in London.
--Editors: Millie Munshi, Daniel Enoch
To contact the reporters on the story: Yi Tian in New York at Ytian8@bloomberg.net; Claudia Carpenter in London at ccarpenter2@bloomberg.net.
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net.
