Copper Set for Second Weekly Advance on Signs of China Recovery
By Bloomberg News
Copper gained, poised for a second weekly advance, after signs that China’s economy is rebounding raised expectations that consumption in the world’s largest user will increase next year.
Metal for delivery in three months rose 0.2 percent to $7,728 a metric ton on the London Metal Exchange at 3:18 p.m. in Shanghai, after falling as much as 0.6 percent. It’s gained 1.6 percent this week, extending last week’s 0.5 percent climb.
“Copper will probably continue to be traded at $7,700 to $7,800,” said Wang Na, an analyst at Guolian Futures Co. While Europe has again become a concern, China seems to be improving and a tight global market is underpinning prices, Wang said.
China’s factory output may have expanded for the first time in 13 months in November, according to a preliminary survey from HSBC Holdings Plc and Markit Economics yesterday. Codelco, the largest producer, reported a 5 percent drop in nine-month output to 1.25 million tons as ore grades fell at its Chilean mines.
The February-delivery copper contract closed 0.2 percent higher at 56,140 yuan ($9,014) a ton on the Shanghai Futures Exchange. The March-delivery contract rose 0.2 percent to $3.514 a pound on the Comex in New York. Tin, nickel and zinc climbed in London, while aluminum and lead were little changed.
Nov 23, 2012