Industrial metals advanced for a second day, extending the biggest rally in two years, as European leaders’ plans to help banks and an economic report from China boosted optimism on the outlook for global growth. Copper for three-month delivery rose as much as 4.3 percent to $7,450 a metric ton on the London Metal Exchange and traded at $7,436 a ton at 3:37 p.m. in Shanghai. Zinc gained 4.2 percent to $1,880 a ton. The LME Index of six primary metals climbed 4.7 percent on Oct. 21, the most since August 2009. European leaders ruled out tapping the European Central Bank’s balance sheet to boost the region’s rescue fund and outlined plans to aid banks, inching toward a revamped strategy to contain the Greece-fueled debt crisis. “Positive news from Europe aided copper,” Pang Juan, an analyst at Jinrui Futures Co., said by phone from Shenzhen. “Still, it will be difficult for prices to climb much higher.” China’s manufacturing may expand in October for the first time in four months, as a preliminary index of purchasing managers rose to 51.1. The so-called Flash PMI released by HSBC Holdings Plc and Markit Economics today was the highest in five months and compares with the final reading of 49.9 for September and August. A reading above 50 indicates expansion. The January-delivery contract on the Shanghai Futures Exchange closed 6 percent higher at 54,750 yuan ($8,587) per ton. Copper for December-delivery on the Comex in New York gained 4.1 percent to $3.3560 a pound. Chinese Imports Refined copper imports by China rose 17 percent to 275,499 tons in September from 235,509 tons in August, the General Administration of Customs said in an e-mailed statement today. Shipments were 14 percent higher from a year earlier. The dollar weakened against 14 of its 16 major counterparts, with the IntercontinentalExchange Inc.’s Dollar Index, which tracks the greenback against six major U.S. trading partners, falling by as much as 0.5 percent today. Managed-money funds held net-short positions in copper, or wagers on falling prices, totaling 8,294 futures and options contracts as of Oct. 18, compared with 9,489 a week earlier, data from the U.S. Commodity Futures Trading Commission showed. Aluminum rose 2.7 percent to $2,183.25 a ton in London. Aluminum Corp. of China Ltd. President Luo Jianchuan said prices are close to the cost of production, according to a statement posted on the company’s website today. Lead climbed 3.2 percent to $1,976.5 a ton. Nickel rose 1.5 percent to $19,075 and tin advanced 2.4 percent to $22,200 a ton. To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

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