Copper rose in New York and London as the dollar slid and economic growth in China, the world’s largest user of the metal, topped economists’ estimates. The U.S. Dollar Index, a six-currency gauge of the greenback’s strength, dropped as much as 0.4 percent, erasing a gain. China’s economy expanded by 9.6 percent in the third quarter, above the median 9.5 percent estimate of economists surveyed by Bloomberg News. Growth in metals demand in the Asian nation will be “robust,” Rio Tinto Group said. Chinese metals “consumption is fairly strong, judging by the data that was released this morning,” said Michael Jansen, an analyst at JPMorgan Securities Ltd. in London. “The price here is running into some consumer resistance, but the funds are bullish and the fundamentals look fairly robust.” December-delivery copper gained 2.85 cents, or 0.8 percent, to $3.822 a pound at 8:14 a.m. on the Comex in New York. Copper for delivery in three months rose 0.7 percent to $8,395 a metric ton on the London Metal Exchange. All of the six main metals traded on the LME advanced except nickel. Chinese construction of cities, homes and factories will support metals demand even as economic expansion slows, according to Rio, the world’s third-largest mining company. “It’s being driven by the fundamentals; urbanization, industrialization,” Ian Bauert, Rio’s China managing director, said in an interview in Shanghai today. Sliding Dollar A weaker dollar makes commodities priced in the currency cheaper in terms of other monies and spurs demand for raw materials as an alternative investment. The dollar index had gained after the Wall Street Journal cited Treasury Secretary Timothy Geithner as saying he’ll work to persuade leaders at Group of 20 meetings that the U.S. is not trying to weaken the currency. Copper, used in electrical equipment and construction, has climbed 4.7 percent on the Comex this month as the dollar index slid 2.2 percent. Conference Board figures due at 10 a.m. Washington time probably will show that the index of U.S. leading indicators climbed in September for a third month, economists said. The gauge of the outlook for the next three to six months rose 0.3 percent, the median estimate of 57 economists surveyed by Bloomberg News shows. Supply Shortfall LME copper stockpiles fell 0.2 percent to 370,000 tons, exchange figures showed. Orders to draw copper from LME inventories, or canceled warrants, rose 12 percent to 28,475 tons, the highest level since Sept. 22, for a two-day jump of 28 percent. Copper demand probably will outpace supply by 180,000 tons this year, with the deficit widening to 482,000 tons next year, JPMorgan’s Jansen said. Zinc for three-month delivery on the LME climbed 2 percent to $2,488 a ton after reaching $2,514.50, the highest intraday price since April 16. Shenzhen Zhongjin Lingnan Nonfemet Co., China’s third-largest zinc producer, suspended output at its Shaoguan smelter after authorities found that excessive levels of thallium were discharged into a river. Lead gained 2 percent to $2,500 a ton after reaching $2,514, the highest price since Jan. 15. The Shaoguan smelter was slated to produce 350,000 tons of lead and zinc this year, according to a stock-exchange statement from the company. Tin rose 0.6 percent to $26,900 a ton. Prices reached a record $27,338.50 on Oct. 14. The metal has jumped 59 percent this year, leading advances on the exchange, after production was disrupted in Indonesia and the Democratic Republic of the Congo. Aluminum advanced 0.6 percent to $2,377 a ton and nickel fell 0.6 percent to $23,800 a ton. To contact the reporter on the story: Anna Stablum in London at astablum@bloomberg.net. To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net.

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