BLBG:Copper Gains as Report May Show U.S. Output Returned to Growth
Copper rose in New York before a government report forecast to show U.S. industrial production returned to growth, bolstering prospects for demand in the world’s second-biggest consumer of the metal.
Output at U.S. factories, mines and utilities gained 0.2 percent in September, according to the median of 85 economist estimates compiled by Bloomberg. Production slid 1.2 percent in August. U.S. manufacturing unexpectedly expanded last month, an Institute for Supply Management index showed Oct. 1.
“We’ve been seeing slightly stronger figures coming out of the U.S. recently,” said James Roberts, a broker at Sucden Financial Ltd. in London. “The industrial-production report may provide some guidance to sentiment.”
Copper futures for December delivery gained 0.4 percent to $3.715 a pound at 7:02 a.m. on the Comex in New York. Prices on the London Metal Exchange advanced 0.9 percent.
The industrial-production report is due at 9:15 a.m. in Washington. Separate figures due 45 minutes later may show improved confidence among U.S. housebuilders. The Copper Development Association says construction generates about 40 percent of demand for the metal.
Copper usage is being sustained in leading global consumer China, Richard Adkerson, chief executive officer of Freeport- McMoRan Copper & Gold Inc., said in an interview in London yesterday. “The continued investment into infrastructure projects is very positive for copper demand,” he said.
Stockpiles of the metal in warehouses monitored by the LME declined for a ninth session in 10 to 210,725 tons, the lowest level since Oct. 23, 2008, daily exchange figures showed. Orders to draw copper from inventories fell 4.1 percent to 44,700 tons.
Aluminum dropped as lead, zinc, nickel and tin gained.
To contact the reporter on this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net
