BLBG:Copper Advances for Third Day as Governments May Boost Economies
Copper rose for a third day in London on speculation governments will take more steps to boost economic growth, supporting manufacturing and demand for industrial metals. Aluminum rallied to a three-week high on China’s stockpiling plan.
Japan’s Prime Minister Yoshihiko Noda said he is willing to dissolve the Diet on Nov. 16, setting the stage for elections, which may put more pressure on the central bank to add stimulus to revive the economy. The State Reserve Bureau will buy 400,000 metric tons of aluminum to aid producers that are losing money, the China Securities Journal reported today. U.S. Treasury Secretary Timothy F. Geithner said yesterday it was “deeply implausible” that Republican lawmakers would force the country over a so-called fiscal cliff.
“The fiscal cliff is a worry, but it will have to be resolved,” said Robert Montefusco, a trader at Sucden Financial Ltd. in London. “Everyone is expecting a solution.” A stronger euro and the SRB’s plans to stockpile metals also helped prices, he said.
Copper for delivery in three months added 0.2 percent to $7,692 a ton by 9:59 a.m. on the London Metal Exchange. Copper for December delivery rose 0.5 percent to $3.5005 a pound on the Comex in New York.
Copper and zinc will rebound after a solution to the fiscal cliff and stimulus in China that may come after March, Xiao Fu, an analyst at Deutsche Bank AG, said in a report today. The fiscal cliff refers to $607 billion in federal spending cuts and tax increases scheduled to take effect in January unless the U.S. Congress intervenes.
LME copper stockpiles were little changed at 254,175 tons as orders to remove the metal from warehouses dropped 2.1 percent to 38,375 tons, daily exchange figures showed.
Aluminum for three-month delivery on the LME rose as much as 1 percent to $2,004 a ton, the highest level since Oct. 19, before trading at $2,001.
Zinc, nickel, lead and tin gained in London.
To contact the reporter on this story: Maria Kolesnikova in London at mkolesnikova@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net
