Copper pared a third weekly drop, rebounding from the lowest level in 20 months, after China’s central bank was said to have made funds available to lenders amid a cash squeeze.
Copper for delivery in three months rose as much as 0.7 percent to $6,817 a metric ton on the London Metal Exchange, after dropping to $6,692, the lowest since October 2011. It traded at $6,797.25 at 10:40 a.m. in Shanghai and has retreated 4.1 percent this week. The LME Index of six primary base metals retreated 2.5 percent yesterday to 2,947.2, the lowest since July 2010.
China’s benchmark money-market rates retreated from records after the central bank was said to have made funds available to lenders amid a cash squeeze. The S&P 500 declined by the most since November 2011 yesterday, while the dollar headed for a weekly gain against all of its 16 major peers as Federal Reserve Chairman Ben S. Bernanke said on June 19 the central bank may start dialing down its stimulus effort this year.
“LME copper has reached a key technical level, and there should be some tentative buying,” Liang Lijuan, an analyst at COFCO Futures Co., said by phone from Beijing. “An effective breach of $6,600-$6,700 could lead to another $1,000 fall, so people are asking themselves whether this is justified.”
Aluminum in London climbed 0.4 percent to $1,805 a ton after dropping for 11 straight sessions to the lowest level since 2009 as stockpiles monitored by the LME rose to a record yesterday. Nickel, zinc and lead climbed.
Copper for delivery in October on the Shanghai Futures Exchange dropped 0.8 percent to 49,340 yuan ($8,048) a ton. The September futures contract on the Comex rose 0.4 percent to $3.085 per pound.
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