Copper Extends Rally to 27-Month High in New York on Global Supply Concern
Copper prices rose in New York, extending a rally to a 27-month high, on signs that global demand will outpace supplies.
Inventories monitored by the London Metal Exchange have dropped to the lowest level in a year amid analyst forecasts for a global shortfall this year and next. Copper has gained 6 percent this month, partly because of the dollar’s decline. The greenback rebounded today against a basket of currencies.
“Copper, being an industrial metal, is exhibiting more strength than the rest of the commodity complex, even with a stronger dollar,” said Adam Klopfenstein, a senior market strategist at Lind-Waldock in Chicago. “There’s still a lot of pent-up demand for copper.”
Copper futures for December delivery rose 0.6 cent, or 0.2 percent, to settle at $3.869 a pound at 1:41 p.m. on the Comex in New York. Earlier, the metal reached $3.893, the highest level for a most-active contract since July 2008.
The Conference Board said today that its U.S. consumer- confidence index increased to 50.2 in October from a revised 48.6, a seven-month low, in September. That topped estimates by analysts.
“With consumer confidence on the uptick and a barometer for economic health, an industrial metal like copper is going to benefit,” said Matthew Zeman, a metal trader at LaSalle Futures Group in Chicago.
Copper for delivery in three months dropped $8 to $8,510 a metric ton ($3.86 a pound) on the LME.
Nickel and tin also fell in London. Lead, zinc and aluminum gained.
To contact the reporter on the story: Pham-Duy Nguyen in Seattle at pnguyen@bloomberg.net;
To contact the editor responsible for this story: Patrick McKiernan at pmckiernan@bloomberg.net
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