Copper rose for a fourth day in New York before reports that may show builders in the U.S. broke ground on more houses and industrial production continued to expand, signaling steady demand. Housing starts climbed 3.6 percent to a 569,000 annual rate last month, according to economists surveyed by Bloomberg News. Industrial production probably gained for a sixth consecutive month, increasing 0.4 percent, a separate survey showed. Prices also advanced on signs of stronger buying interest in China, the world’s biggest copper consumer. “There is the air of greater confidence around in the market,” said Steve Hardcastle, head of client services for industrial commodities at Sucden Financial Ltd. in London. “The price now more closely resembles the fundamental picture for copper. In the last couple of days, we have seen a little bit of Chinese physical interest.” Copper for July delivery rose 3.2 cents, or 0.8 percent, to $4.0225 a pound by 7:48 a.m. on the Comex in New York. The metal for three-month delivery climbed 0.6 percent to $8,890 a metric ton on the London Metal Exchange. The Commerce Department’s housing figures are due at 8:30 a.m. New York time, followed 45 minutes later by the industrial- output report from the Federal Reserve. Construction accounts for a quarter of copper demand, according to the Copper Development Association. Macquarie Estimates Macquarie Group Ltd. removed its “short-term trading sell call” on copper, citing a tightening market in China. The bank’s copper-price estimates for this year’s second half and the first half of 2012 are more than 25 percent above current prices, analyst Bonnie Liu in Shanghai said. “The prospect of sharp declines in copper stocks in global warehouses in the second half of 2011 and a pickup of Chinese copper imports from mid-2011 are set to be the catalyst for the next move higher,” Liu said in a report dated today. Copper inventories tracked by the LME are up 34 percent from the 2010 low on Dec. 10. Today they climbed 500 tons to 467,575 tons. Orders to draw metal from stocks, or canceled warrants, rose 4,300 tons to 24,650 tons. Aluminum for three-month delivery on the LME fell 0.7 percent to $2,529 a ton. Stockpiles rose to a record for a second day, gaining 22,625 tons to 4.71 million tons, according to daily exchange figures. The biggest increases were in Detroit warehouses. Investors are paying the most since March to borrow aluminum for a day in London. The so-called tom-next spread today rose as high as $7 a ton, the highest level since March 15, LME figures showed. Aluminum for immediate delivery traded at a premium of $6.75 a ton to the three-month contract today, down from as much as $25 yesterday, data compiled by Bloomberg showed. Lead, nickel and tin gained in London, while zinc fell. To contact the reporter on this story: Agnieszka Troszkiewicz in London at atroszkiewic@bloomberg.net To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

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