Copper rose to the highest price in 11 weeks on speculation that economic growth will be resilient in China and the U.S., the world’s biggest metal users.
The Shanghai Composite Index of equities jumped to a two-month high. U.S. orders and shipments for nonmilitary capital goods excluding aircraft climbed 0.6 percent in June, the Commerce Department said. Copper has gained 10 percent in July.
“People are thinking that the economy is not as bad as they had feared,” said Lannie Cohen, the president of Capitol Commodity Services in Indianapolis. “China is still strong and will support copper demand.”
Copper futures for September delivery gained 3.9 cents, or 1.2 percent, to close at $3.2455 a pound at 1:20 p.m. on the Comex in New York. Earlier, the price reached $3.265, the highest level for a most-active contract since May 10.
“Growth in Asia is pretty powerful,” said Dan Smith, an analyst at Standard Chartered Plc in London. A rebound in the U.S. “is only going to add to the recovery,” he said.
Copper stockpiles monitored by the London Metal Exchange fell, extending a slump to the lowest level since Nov. 17. Inventories have dropped 18 percent this year to 411,425 metric tons, signaling steady demand.
On the LME, copper for delivery in three months rose $111, or 1.6 percent, to $7,170 a metric ton ($3.26 a pound).
Aluminum, tin, lead and zinc also gained in London. Nickel fell.