Copper Gains as Chinese Industrial Production Exceeds Analysts' Estimates
Copper rose the most in more than a week after industrial output topped analyst estimates in China, the world’s largest metal user. Tin, lead and nickel also gained.
Factory production jumped almost 14 percent in August from a year earlier, a statistics bureau report showed on Sept. 11, compared with the 13 percent median estimate of 29 economists in a Bloomberg survey. Copper has advanced 21 percent since July 1 as inventories dropped and the dollar declined.
The data on China is “suggesting that the economy remains strong enough to generate a continued demand-side pull on commodities,” Edward Meir, an analyst at MF Global Holdings Ltd. in Darien, Connecticut, said in a report.
Copper futures for delivery in December gained 7.25 cents, or 2.1 percent, to close at $3.479 a pound at 1:19 p.m. on the Comex in New York, the biggest gain for a most-active contract since Sept. 1. Last week, the metal dropped 2.7 percent.
China’s retail sales and lending also exceeded economists’ estimates, and imports accelerated, another sign that the nation’s growth is picking up after the government took measures to cool the property market.
The data will add to “positive momentum for risk appetite this week,” Robin Bhar, an analyst at Credit Agricole SA’s investment-banking unit in London, said in a report.
On the London Metal Exchange, copper for delivery in three months advanced $144, or 1.9 percent, to $7,630 a metric ton ($3.46 a pound).
Tin climbed 1.9 percent on the LME to $22,300 a ton, the highest price since Aug. 1, 2008.
Lead jumped 3 percent to $2,251 a ton. Earlier, the metal reached $2,255, the highest level since April 30.
Nickel rose 1.6 percent to $22,850 a ton. Earlier, the price reached $23,168, the highest level since May 12.
Aluminum and zinc also gained in London.
To contact the reporters on the story: Yi Tian in New York at Ytian8@bloomberg.net; Anna Stablum in London at astablum@bloomberg.net.
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