BLBG:Copper Rises From Six-Week Low as Industrial Metals Gain
Copper recovered from a six-week low on speculation that China, the largest user, will introduce measures to support growth, boosting demand for metals.
Copper for delivery in three months gained as much as 0.7 percent to $8,009 a metric ton on the London Metal Exchange, before trading at $7,966 at 11:37 a.m. Shanghai time. Futures fell to $7,930 yesterday, the lowest level since Sept. 7.
China added 13 railway projects to this year’s construction investment plan, increasing the number of projects to 22, the Economic Information Daily reported today, without citing anyone. The country approved last month plans to build about 1,250 miles (2,012 kilometers) of roads, 25 new subway and inter-city rail projects as well as port and warehouse developments. Premier Wen Jiabao said the “economic growth has started to stabilize,” the Xinhua News Agency reported on Oct. 17.
“We expect the Chinese economy to gradually improve into the first quarter,” Zhang Sida, an analyst at Dalu Futures Co., said by phone from Shanghai. “The demand is not good, but it should improve as a stabilizing equities market indicates.”
China’s benchmark stock index rose to a six-week high yesterday on speculation regulators will introduce measures to bolster equities before a once-a-decade leadership transition next month. The Shanghai Composite Index (SHCOMP) traded 0.2 percent lower today.
January futures fell 0.5 percent to 57,790 yuan ($9,216) a ton on the Shanghai Futures Exchange. December futures on the Comex in New York were little changed at $3.6235 a pound.
On the LME, aluminum, zinc, nickel, lead and tin advanced.
To contact Bloomberg News staff for this story: Helen Sun in Shanghai at hsun30@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
