BS: Copper Climbs as Improving U.S. Growth Boosts Outlook for Demand
Copper rose for the second time in three sessions as signs of economic improvement bolstered prospects for metals demand in the U.S., the world’s second- biggest consumer.
Government and industry reports this week may show U.S. home purchases climbed in February to the highest in almost two years, according to economists surveyed by Bloomberg News. Separate data from the Commerce Department may signal homebuilding improved. Construction generates about 40 percent of demand, according to the Copper Development Association.
“There’s some euphoria starting to appear about the U.S. economy, and that’s working to support copper,” Sterling Smith, an analyst at Country Hedging in St. Paul, Minnesota, said in a telephone interview.
Copper futures for May delivery advanced 0.8 percent to $3.9075 a pound at 10:32 a.m. on the Comex in New York. The metal gained 0.5 percent last week.
Money managers raised their net-long positions, or bets on price gains, by 4.7 percent to 14,259 futures and options contracts as of March 13, according to the U.S. Commodity Futures Trading Commission.
Prices also rose today on signs of shrinking supplies. Inventories tracked by the London Metal Exchange have slumped 29 percent this year.
Futures earlier fell as much as 0.6 percent on signs of a slowdown in China, the top metals consumer. House prices had the worst performance in a year last month, China’s statistics bureau said yesterday.
On the LME, copper for delivery in three months rose 0.9 percent to $8,589 a metric ton ($3.90 a pound).
Aluminum, tin, zinc and lead gained on the LME. Nickel declined.
To contact the reporter on this story: Joe Richter in New York at jrichter1@bloomberg.net
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net
