Copper Futures Advance on Outlook for Demand in China
Copper futures rose after stronger economic growth bolstered the outlook for demand in China, the world’s largest consumer of the metal.
In the three months ended Sept. 30, gross domestic product expanded 7.8 percent from a year earlier, China’s statistics bureau said today. Expansion accelerated from 7.5 percent in the prior period, the first increase in three quarters. Copper also rose on speculation that the Federal Reserve will maintain its monetary stimulus after a stalemate over U.S. fiscal policy shut the government for 16 days, slowing the economy.
“China growth numbers are very supportive,” David Meger, the director of metal trading at Vision Financial Markets in Chicago, said in a telephone interview. “The Fed maintaining the pace of the stimulus is also helping copper.”
Copper futures for December delivery advanced 0.1 percent to close at $3.299 a pound at 1:05 p.m. on the Comex in New York. The price, up 0.9 percent this week, has dropped 9.7 percent in 2013.
Inventories tracked by the London Metal Exchange fell for the 32nd straight session to 497,500 metric tons, the lowest since March 7.
On the LME, copper for delivery in three months rose 0.2 percent to $7,245 a ton ($3.29 a pound.) Zinc and nickel advanced, while aluminum, lead and tin fell.
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