Copper Rises Most in Three Weeks on China Manufacturing

Copper futures rose the most in three weeks as a gauge of manufacturing climbed to an 18-month high in China, the world’s top consumer of industrial metals.

China’s factory measure from HSBC Holdings Plc and Markit Economics showed a preliminary July reading of 52, compared with the 51 median estimate of analysts surveyed by Bloomberg News. A level above 50 indicates expansion. Copper inventories monitored by the London Metal Exchange extended a slump to the lowest since August 2008.

“Every time we see a strong number out of China, the copper market responds to it,” Tom Power, a senior market strategist at RJO Futures in Chicago, said in a telephone interview. “I think the rally will continue for some time.”

Copper futures for September delivery climbed 1.9 percent to settle at $3.2665 a pound at 1:14 p.m. on the Comex in New York, the biggest gain for a most-active contract since July 2. Trading was 24 percent above the 100-day average for this time, according to data compiled by Bloomberg..

On the LME, copper for delivery in three months rose 1.8 percent to $7,169.50 a metric ton ($3.25 a pound). Inventories fell 1.2 percent to 154,350 tons. They have tumbled 58 percent this year.

Zinc for three-month delivery advanced 1 percent to $2,388 a ton. Earlier, the price reached $2,394, the highest since Aug. 4, 2011. Nickel, aluminum, lead and tin also gained in London.

To contact the reporters on this story: Maria Kolesnikova in London at mkolesnikova@bloomberg.net; Luzi Ann Javier in New York at ljavier@bloomberg.net

To contact the editors responsible for this story: Millie Munshi at mmunshi@bloomberg.net Joe Richter, 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.