Copper Advances to Five-Week High on China Growth Optimism
Copper advanced to a five-week high on signs of improving growth prospects in China, the world’s largest user of industrial metals.
Confidence in China’s economy is at the highest in more than a year amid speculation that the new leader Xi Jinping will be better for the financial climate, a Bloomberg investor poll shows. A report tomorrow may show manufacturing increased in the country this month. In the U.S., business activity expanded in November for the first time in three months, the MNI Chicago Report’s business barometer showed today.
“The general chatter is that China may be doing better,” Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago, said in a telephone interview. “All of the industrials pick up when the world economy looks better.”
Copper futures for March delivery rose 0.7 percent to $3.63 a pound at 10:59 a.m. on the Comex in New York, after touching $3.6415 a pound, the highest since Oct. 22.
The Chinese Purchasing Managers’ Index probably will increase to 50.8 in November from 50.2, according to the median of 28 estimates compiled by Bloomberg before tomorrow’s report.
Codelco, the world’s largest copper producer, said today there is “sound and solid” interest from customers for next year. Demand may grow 5 percent to 7 percent next year in China, Codelco Chief Executive Officer Thomas Keller said today in Shanghai, citing analyst estimates.
“Growth appears also to have been re-ignited in Asia and the states,” Michael Turek, a senior director at Newedge Group SA, said by e-mail.
Copper stockpiles monitored by the London Metal Exchange fell 0.4 percent to 248,150 metric tons, exchange data showed today. Inventories are down 33 percent this year.
On the LME, copper for delivery in the months rose 0.8 percent to $7,962.25 a ton ($3.61 a pound)
Aluminum, nickel, zinc and lead also gained in London. Tin was lower.
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