BLBG:Copper Advances for a Third Day as IMF Is Said to Seek $1 Trillion Boost
Copper rose for a third day in London on a report that the International Monetary Fund aims to boost its lending resources by $1 trillion to safeguard the global economy against any worsening of Europe’s debt crisis.
The lender is pushing nations including China and India to be the top contributors, according to an official at a Group of 20 nation, who spoke on condition of anonymity because the talks are private. Concern that the crisis might sap economies prompted the World Bank to lower its forecast for this year’s global growth today.
“If they succeed in getting the bigger war chest, it will help them bail out or support sovereign countries in distress,” William Adams, head of research at Basemetals.com in London, said by e-mail today. “It buys more time, but whether it gets to the root of the problem remains to be seen.”
Copper for three-month delivery climbed 0.5 percent to $8,243 a metric ton by 10:45 a.m. on the London Metal Exchange. Prices had slid as much as 1 percent after the bank said the global economy will expand 2.5 percent this year, below a June estimate of 3.6 percent. Copper for March delivery rose 0.4 percent to $3.744 a pound on the Comex in New York.
“It’s risk-on again,” Daniel Briesemann, an analyst at Commerzbank AG in Frankfurt said by e-mail.
‘Resilient Demand’
Prices also increased as Credit Suisse Group AG said industrial-production figures signal a rebound for raw materials. “Alongside this resilient demand picture, supply of many commodities has continued to struggle,” such as oil and copper, New York-based analyst Ric Deverell said in a report dated yesterday.
Concern that copper supply may fall short of demand has helped to support prices. BHP Billiton Ltd., the biggest mining company, said its production of the metal dropped 16 percent from a year earlier in the six months through December. Competitor Rio Tinto Group said yesterday its output of mined copper slid 23 percent in 2011.
Copper inventories monitored by the LME declined for an 11th session to 352,500 tons, remaining at the lowest level since Dec. 14, 2010. Orders to draw the metal from inventories, or canceled warrants, fell 0.6 percent to 65,650 tons after climbing 60 percent last week, daily exchange figures showed.
Nickel for three-month delivery on the LME was little changed at $19,535 a ton. The ratio of canceled warrants to stockpiles yesterday reached the lowest level since March 2010.
Aluminum fell 0.4 percent to $2,218 a ton and zinc gained 0.8 percent to $2,017 a ton. Lead rose 0.9 percent to $2,128 a ton and tin slipped 0.1 percent to $21,700 a ton.
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
