Copper Futures Seen Rising on China Stimulus Speculation

Copper futures, little changed in New York, may rise for the third time in four sessions on speculation that China will stoke its economy after a gauge of manufacturing touched an eight-month low.

The measure fell to 48 in March, the lowest since July, HSBC Holdings Plc and Markit Economics said today. A separate official gauge rose to 50.3 from 50.2. Readings above 50 signal growth. The China Securities Journal said in a commentary that the nation, the world’s biggest consumer of industrial metals, may expand fiscal spending to spur demand. In the first quarter, copper prices slumped 11 percent, the most since 2011.

“The stimulus story is perking up copper,” Adam Klopfenstein, a senior market strategist at Archer Financial Services in Chicago, said in a telephone interview. “Also, some buyers are returning after the sharp drop in prices.”

Copper futures for May delivery rose 0.1 percent to $3.029 a pound at 11:17 a.m. on the Comex in New York. Yesterday, the price reached $3.05, the highest for a most-active contract since March 11.

“The move higher we have seen so far has not been that convincing, and it may only express some bottom-fishing,” Ole Hansen, the head of commodity strategy at Saxo Bank A/S in Copenhagen, said in an e-mail.

On the London Metal Exchange, copper for delivery in three months fell less than 0.1 percent to $6,643 a metric ton ($3.01 a pound).

Stockpiles at warehouses tracked by the LME, down for the fourth straight session, have slumped 28 percent this year.

Aluminum rose 0.4 percent to $1,792.75 a ton in London. The price climbed for the fourth straight session, the longest rally since Feb. 14. Bookings to remove the metal from warehouses climbed to a record.

Nickel and tin gained, while lead and zinc fell.

To contact the reporters on this story: Agnieszka Troszkiewicz in London at; Debarati Roy in New York at

To contact the editors responsible for this story: Millie Munshi at Patrick McKiernan

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.