Copper Climbs From Near Two-Week Low Ahead of China Factory Data
Copper rebounded after slumping by the most in 12 weeks before a report that may show manufacturing expanded in China, the biggest metals user.
The contract for delivery in three months on the London Metal Exchange rose 0.4 percent to $7,196.50 a metric ton by 9:51 a.m. in Seoul. The price lost as much as 2.2 percent yesterday, the biggest drop since July 30, on concern that China may tighten its policies. Copper fell 9.2 percent this year.
A private gauge of Chinese manufacturing from HSBC Holdings Plc and Markit Economics today may signal a third month of expansion. The Purchasing Managers’ Index is likely to have climbed to 50.4 this month from 50.2 in September, a Bloomberg survey shows. Levels above 50 signal expansion. Economic growth accelerated for the first time in three quarters last quarter and factory output grew 10.2 percent last month.
“Manufacturing in China hasn’t been that bad, with the index staying above 50,” said Hwang Il Doo, a senior metals trader at Seoul-based Korea Exchange Bank Futures Co. “Still, it remains to be seen whether China will actually tighten its policies.”
Futures for delivery in December increased 0.2 percent at $3.275 a pound on the Comex in New York. Copper for delivery in January on the Shanghai Futures Exchange fell 0.6 percent to 51,810 yuan ($8,410) a ton.
On the LME, aluminum rose, while lead and nickel fell. Zinc was little changed and tin hadn’t traded.
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