Aluminum, copper and nickel erased declines in London as U.S. stock equity futures rose before Federal Reserve Chairman Ben Bernanke speaks to Congress. Futures on the S&P 500 expiring in March added 0.9 percent. Copper has dropped 61 percent in the past year and aluminum declined to a seven-year low earlier today as the global recession curbed demand for industrial metals. The rebound is “more equities than anything,” said David Thurtell, an analyst at Citigroup Inc. in London. “Bernanke’s going to want to come out and try to boost confidence.” Aluminum for delivery in three months rose $19, or 1.5 percent, to $1,307 a metric ton as of 1:30 p.m. on the London Metal Exchange. Copper jumped $19, or 0.6 percent, to $3,250 a ton and nickel climbed $95, or 1 percent, to $9,600 a ton. Bernanke is scheduled to deliver his semi-annual monetary policy report before the Senate Banking Committee today and before the House Financial Services Committee tomorrow. All metals on the LME had declined earlier today, with aluminum falling to $1,279, the lowest since November 2001. Prices of aluminum have followed crude oil lower as cheaper production costs spur speculation that supply of the metal will expand. Crude oil was little changed today after falling 4 percent yesterday. ‘Energy Intensive’ “Aluminum is very energy intensive to produce,” said Eliane Tanner, an analyst at Credit Suisse Group in Zurich. “When prices of energy go up, then aluminum will be supported.” Honda Motor Co., Japan’s second-largest carmaker, expects sales in Japan to fall as much as 11 percent in the year ending March as the recession damps demand. Aluminum inventories have jumped 36 percent this year as U.S. car sales tumbled 37 percent in January. Transportation is the biggest use for the lightweight metal, according to Citigroup Inc. “We expect aluminum prices to remain weak as long as the economy hasn’t bottomed and inventories are still very high,” Tanner said. “From this point of view, we’re not too positive on aluminum.” LME-tracked inventories of aluminum rose to a record 3.2 million tons, with 14 percent of supplies in warehouses in Detroit. The LME index of six industrial metals rose 0.7 percent yesterday as nickel and copper advanced. Wire, Cable Copper wire and cable shipments in Japan, the world’s fourth-largest copper buyer, dropped 21 percent in January from a year earlier, the biggest drop since February 1975, according to the Japanese Electric Wire and Cable Makers’ Association. Zinc dropped $9.50, or 0.9 percent, to $1,088.50 a ton. China, the world’s largest producer of zinc, will discuss buying the metal from domestic smelters tomorrow for the second time this year, three company executives familiar with the plan said. The bureau may seek to buy 100,000 tons, one executive said. Zinc purchases were 59,000 tons last month. Tin declined $5 to $10,400 and lead fell $18 to $1,005 a ton.

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