Copper Rises, Caps Weekly Gain, as Stockpile Drop Signals Climbing Demand
Copper prices rose, capping a weekly gain, on increasing speculation that global growth will be resilient and metals demand will gain.
The MSCI World Index of shares has advanced for four straight days on an improved outlook for the global economy. Stockpiles tallied by the London Metal Exchange have declined for 20 consecutive weeks, the longest slump since 2004, signaling steady consumption. Copper prices fell 17 percent in the second quarter on concern that demand would slow.
“Things are starting to look more positive for copper,” said Lannie Cohen, the president of Capitol Commodity Services in Indianapolis. “The economic situation is looking better and people are starting to buy again.”
Copper futures for September delivery gained 3.8 cents, or 1.3 percent, to $3.0535 a pound on the Comex in New York. That leaves the metal up 4.7 percent this week.
Copper inventories tracked by the LME declined 2.3 percent this week to 436,900 tons, the lowest level since Nov. 27. They’re down 13 percent this year.
“Base metals have benefited from improved risk sentiment over the past week,” Andrey Kryuchenkov, an analyst at VTB Capital in London, said in an e-mail today. “Shanghai stocks are still falling, which is a very positive sign.”
Supplies monitored by the Shanghai Futures Exchange dropped 5.7 percent this week, the ninth decline in the past 10 weeks. China is the world’s biggest copper user, followed by the U.S.
On the LME, copper for delivery in three months added $145, or 2.2 percent, to $6,760 a metric ton ($3.07 a pound).
Also in London, aluminum, lead, nickel, tin and zinc prices climbed.
To contact the reporters on the story: Anna Stablum in London at astablum@bloomberg.net; Millie Munshi in New York at mmunshi@bloomberg.net
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