May 8 (Bloomberg) -- Copper futures rose to a three-week high as China’s exports increased more than forecast and Germany’s industrial output climbed unexpectedly, bolstering prospects for metal demand.
Shipments from China, the world’s biggest copper user, advanced 14.7 percent last month from a year earlier, topping the 9.2 percent forecast in a Bloomberg survey of economists, government data showed today. German production rose 1.2 percent in March after analysts projected a 0.1 percent decline.
“Everything is up on the back of the Chinese and German data,” Grant Barratt, a trader at Jefferies Bache LLC in New York, said in a telephone interview. “It’s more of a reaction to the economic reports, but we are starting to see some consumer interest come around as well.”
Copper futures for July delivery increased 2.1 percent to settle at $3.3705 a pound at 1:17 p.m. on Comex in New York. Earlier, the metal reached $3.399, the highest for a most-active contract since April 12. The metal has dropped 7.7 percent this year.
China’s export growth accelerated even as shipments to the U.S. and Europe fell, spurring Bank of America Corp. and Mizuho Securities Co. analysts to say the figures were inflated by fake reports.
Goldman Sachs Group Inc. said in a report dated yesterday that it remains bullish on copper in the near term, citing a decline in inventory and expectations that demand will increase in China.
On the London Metal Exchange, copper for delivery in three months climbed 2.1 percent to $7,419 a metric ton ($3.37 a pound). Aluminum, tin, zinc, nickel and lead advanced.
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