BLBG:Copper Climbs to Four-Month High as U.S., China Economies Revive
Copper advanced to a four-month high as lead, tin and aluminum rallied on signs that China and the U.S. are recovering, boosting the outlook for base-metals demand in the world’s two largest economies.
Copper for three-month delivery rose as much as 0.7 percent to $8,346 a metric ton on the London Metal Exchange, the highest level since Oct. 5, and was at $8,306 at 11:43 a.m. in Tokyo. The price rose 3.2 percent last week, the biggest advance since September. The contract for delivery in May gained 0.6 percent to 60,000 yuan ($9,633) a ton on the Shanghai Futures Exchange.
In the U.S., manufacturing grew more than forecast last month and hiring increased, separate reports showed on Feb. 1. Manufacturing in China, the second-biggest economy, expanded in January for a fourth consecutive month, signaling that global growth picked up at the start of 2013. Copper is used to make pipes and wires.
“Rising Chinese and U.S. manufacturing output painted a positive backdrop for commodity demand,” analysts led by Mark Pervan at Australia & New Zealand Banking Group Ltd., said in a report today. “Performances looked pretty even, suggesting supply had little influence on traders’ minds.”
U.S. payrolls expanded 157,000 in January after a revised 196,000 advance in December and a 247,000 surge in November, Labor Department data showed on Feb. 1. The Institute for Supply Management’s manufacturing index climbed to 53.1 in January, the highest level since April, from 50.2 the prior month, according to a report from the Tempe, Arizona-based group.
Copper stockpiles monitored by the Shanghai Futures Exchange dropped last week to the lowest level in two months. Inventories fell for a third week, losing 8,029 tons to 197,091 tons, data from the bourse showed on Feb. 1. Still, reserves monitored by the LME gained 1.1 percent to 376,000 tons, the highest since Dec. 16, 2011, bourse data showed on Feb. 1.
Copper for delivery in March was little changed at $3.7835 a pound on the Comex in New York. On the LME, lead climbed as much as 1 percent to $2,475 a ton, the highest since Jan. 3, and traded at $2,470, while aluminum, tin, zinc and nickel advanced.
To contact the reporter on this story: Jae Hur in Tokyo at jhur1@bloomberg.net
To contact the editor responsible for this story: Brett Miller at bmiller30@bloomberg.net
