June 30 (Bloomberg) -- Copper futures in Shanghai rose for the first day in three after a report yesterday on U.S. economic growth signaled more demand for the metal in the country, the world's second-largest user after China.

The U.S. economy grew at a 3.8 percent annual pace in the first quarter with residential construction expanding 12 percent, the Commerce Department said. Cheap loans helped spur demand for homes, boosting copper consumption by about 400 pounds for every new single-family house built, according to industry estimates.

``The U.S. figures are fairly good,'' Cai Luoyi, a metal analyst at China International Futures (Shanghai), said today by phone. ``We continue to be optimistic about copper's broader trend as Chinese economic growth is also strong.''

Copper for delivery in September rose as much as 530 yuan, or 1.6 percent, to 32,890 yuan ($3,974) a ton on the Shanghai Futures Exchange. It traded 1.5 percent higher at 32,840 yuan at 9:33 a.m. local time.

Shanghai copper also rose after London prices closed above $3,300 a ton yesterday, a so-called support level on charts some traders use to predict price movements, said Cai.

Support refers to points on the charts where buying orders may be clustered.

Copper for delivery in three months on the London Metal Exchange yesterday initially fell as much as 2.2 percent to $3,280 a ton, the biggest intraday decline since June 23. It closed higher at $3,358 a ton and was bid at $3,363, and offered at $3,368 in after-hours trading at 9:31 a.m. Shanghai time.

Copper fell in London early in the session after the London Metal Exchange said stockpiles rose for the first time in two weeks. Inventories rose 725 metric tons, or 2.4 percent, to 30,975 tons, the exchange said.

Copper for delivery in September rose 0.25 cent, or 0.2 percent, to $1.5645 a pound on the Comex division of the New York Mercantile Exchange at 9:32 a.m. Singapore time in after-hours trade.

To contact the reporter on this story: Chia-Peck Wong in Singapore at cpwong@bloomberg.net.

Last Updated: June 29, 2005 22:21 EDT