Copper and nickel advanced as optimism that Greece won’t default helped increase confidence in the economy, potentially boosting demand for raw materials. Three-month copper on the London Metal Exchange climbed as much as 0.6 percent to $9,020 a metric ton, and was at $8,984 at 2:54 p.m. in Singapore, while nickel gained as much as 0.9 percent to $22,390 a ton. Aluminum rose as Greek creditors may agree to roll over the nation’s debt to prevent a default before lawmakers in the country vote tomorrow on budget cuts and asset sales needed to secure an aid payment. “We’re not going to see a strong rebound as long as this Greece issue hangs over investors’ heads,” said Yang Jun, an analyst at Hongyuan Futures Co. “The macroeconomic environment will continue to drive direction.” Copper on the Comex in New York rose as much as 0.7 percent to $4.097 a pound, while metal for September delivery on the Shanghai Futures Exchange climbed as much as 0.9 percent to 67,450 yuan ($10,419) a ton. The dollar was little changed against a six-currency basket including the euro after losing 0.3 percent as Germany welcomed a proposal from French lenders on a rollover agreement involving 70 percent of Greek bonds, sending Asian equities higher. The regional benchmark MSCI Asia Pacific Index rose today as concern that Greece’s sovereign debt crisis will spread across Europe, one of Asia’s biggest export markets, eased. Nickel Pig Iron Nickel, the worst-performer on the London Metal Exchange this year, may extend a decline as China leads a switch among users to a low-cost substitute, hurting refined metal prices, according to Morgan Stanley. Prices are at risk of reaching a “bear-case scenario” of $10.42 per pound ($22,976 a ton) this year on “greater than anticipated levels of substitution from nickel pig-iron production in China,” analysts Peter Richardson and Joel Crane, wrote in a report today. Three-month nickel, trading at $22,345 a ton, has averaged $25,628 this year. Aluminum in London climbed 0.3 percent to $2,516.50 a ton and zinc rose 0.3 percent to $2,260 a ton. Lead gained 0.4 percent to $2,577 a ton, while tin lost 0.3 percent to $25,000. To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net To contact the editor responsible for this story: James Poole at jpool4@bloomberg.net

Source