Copper rose in London, heading for a weekly gain, as Chinese imports of the metal climbed to a record and inventories continued to drop. Stockpiles of copper in warehouses monitored by the London Metal Exchange fell for a 12th consecutive day. China increased imports of copper by 7 percent in April, customs figures showed today, as buyers replenished stockpiles needed for the country’s 4 trillion-yuan ($586 billion) stimulus program. “The strength of Chinese import demand has been pretty phenomenal,” Kevin Norrish, an analyst at Barclays Capital in London, said by phone. “We’ve seen that confirmed again in the import statistics.” Copper for three-month delivery rose $140, or 3.1 percent, to $4,610 a metric ton by 10:26 a.m. on the LME. The contract has gained 3.6 percent this week after dropping 5 percent last week, the first retreat this month. Copper for July delivery added 2.3 percent to $2.0980 a pound on the New York Mercantile Exchange’s Comex division. Demand from China, the world’s largest copper consumer, has helped to send LME prices 50 percent higher this year. Some analysts view the metal as a growth indicator because of its use in pipes and wiring. Norrish predicted weaker Chinese import demand as the price differential between copper prices in London and Shanghai narrows. More Than Double “These markets have been dependent on Chinese restocking and scrap shortages,” he said. Inbound shipments of refined copper advanced to 317,947 tons in April and were more than double a year earlier, the Chinese figures showed. The country imported 1.07 million tons of copper in 2009’s first four months, according to customs data. Last year it imported just under 1.5 million tons, according to Macquarie Group Ltd. in London. Slowing imports into China would weigh on copper prices, Goldman Sachs Group Inc. analysts led by Peter Mallin-Jones in London said in a report today. There’s “little evidence” that demand from Western countries would “offset a Chinese pullback,” they said. Still, copper “is likely to be higher, assuming no worsening of the global economy,” on a 12-month-plus view, said Goldman Sachs. The metal is likely to be affected by capacity constraints by 2011, according to the bank, which raised its estimate for immediate-delivery copper’s average price this year to $3,749 a ton from $3,088. Aluminum Inventories Stockpiles of copper in LME-monitored warehouses fell 0.8 percent to 333,375 tons today and have dropped 18 percent in May. Shanghai copper stockpiles declined for the first time in four weeks, sliding 4.5 percent, the Shanghai Futures Exchange said on its Web site. Among other LME metals for three-month delivery, aluminum rose 0.4 percent to $1,456 a ton, reducing this year’s drop to 5.5 percent. LME-monitored inventories of the lightweight metal, used in industries from packaging to aerospace, rose 0.4 percent today to a record 4.19 million tons. “Prices could fall toward $1,420 to $1,400 per ton within the next three weeks,” Laredo, Texas-based researcher HARBOR Intelligence said in a report dated May 20. Goldman Sachs cut its estimate for immediate-delivery aluminum’s average price this year to $1,443 a ton from $1,470. In 2010, the bank expects the metal to average $1,545 a ton, down from $1,738 previously. Lead rose 3.2 percent to $1,435 a ton, and zinc added 4.6 percent to $1,509 a ton. Nickel gained 3.5 percent to $12,550 a ton, and tin rose 3.4 percent to $13,750 a ton.

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