BLBG: Copper Posts Biggest Weekly Gain in Four Months on Housing Data
By Millie Munshi
July 17 (Bloomberg) -- Copper futures rose, capping the biggest weekly gain in four months, as U.S. construction of single-family homes jumped by the most since 2004.
U.S. housing starts rose 3.6 percent in June from May to an annual rate of 582,000, the highest level since November, the Commerce Department reported today. The increase followed a 17 percent jump in May for the first back-to-back gains since February 2008. Copper has surged 72 percent this year on speculation that the global recession is easing.
“Copper is popping higher after the housing report,” said Matthew Zeman, a trader at LaSalle Futures Group in Chicago. “Housing is really important for this market. With a turn in housing comes increased consumer spending and higher demand for base metals.” Builders are the biggest users of copper.
Copper futures for September jumped 3.35 cents, or 1.4 percent, to $2.423 a pound on the Comex division of the New York Mercantile Exchange. This week, the metal gained 9.6 percent, the most since early March.
Work began on single-family homes at an annual rate of 470,000 units last month, up 14 percent from May, or the sharpest increase since an 18 percent surge in December 2004.
On the London Metal Exchange, copper for delivery in three months advanced $50, or 1 percent, to $5,310 a metric ton ($2.41 a pound). The price reached a record $8,940 on July 2, 2008.
To contact the reporter on this story: Millie Munshi in New York at mmunshi@bloomberg.net
