Copper Climbs, Set for Second Weekly Gain on Lower Inventories, China Data
Copper climbed, set for a second weekly advance, after London Metal Exchange stockpiles decreased to their lowest level in six months and a report showed that inflation slowed in China. Other base metals also increased.
The three-month contract gained as much as 2.8 percent to $7,517 a metric ton on the LME and traded at $7,510 by 3 p.m. Shanghai time. The contract is up 1.9 percent this week. Copper for December delivery on the Shanghai Futures Exchange climbed 2.1 percent to 56,010 yuan ($8,781) a ton.
LME copper stockpiles fell to 453,100 tons as of yesterday, the lowest level since April 19, daily exchange figures showed. The decline was led by Asian warehouses, signaling rising regional demand. China’s consumer prices increased 6.1 percent in September from a year earlier, the National Bureau of Statistics said today. That followed a 6.2 percent gain in August.
“Inflation cooled down a bit, which together with falling LME inventories and rising Chinese imports, provided temporary relief to copper,” Wang Ning, an analyst at Xiangyu Futures Co., said by phone from Shanghai.
Chinese imports of unwrought copper and products rose to a 16-month high of 380,526 tons in September, the General Administration of Customs said yesterday. The arrivals were 12 percent higher than August and grew 3.3 percent from a year ago.
Data showing inflation easing was “encouraging,” and gives the government leeway to ease monetary policies, Jing Ulrich, Hong Kong-based chairwoman of global markets for China at JPMorgan Chase & Co said in a Bloomberg Television interview.
Canceled warrants, which are orders to draw metal from inventories, last week climbed to 60,000 tons, the highest level since May 2009. They were at 51,850 tons yesterday.
Aluminum gained 0.5 percent to $2,217.75 a ton, zinc added 1.3 percent to $1,948 a ton. Lead was little changed at $2,037.50 a ton, nickel gained 1.1 percent to $18,661 a ton, and tin climbed 2.3 percent to $22,500 a ton.
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