Copper advanced for a second straight day as government reports from Japan to Europe to the U.S. bolstered prospects for economic growth and demand for metals.
Retail sales in Germany climbed 0.8 percent from April, the Federal Statistics Office in Wiesbaden said. Japanese factory output rose 2 percent in May, the most since December 2011. The index of pending home sales in U.S. jumped 6.7 percent, the highest since December 2006, the National Association of Realtors showed yesterday. Copper dropped 10 percent this quarter through yesterday, the most since 2011, amid concern demand will slow from China, the world’s top user.
“We have seen some positive news for copper in the past two days,” Fain Shaffer, the president of Infinity Trading Corp. in Medford, Oregon, said in a telephone interview. “Also, it has been battered so much that there could be some value buying.”
Copper futures for September delivery gained 0.8 percent to $3.0835 a pound at 11:23 a.m. on the Comex in New York. Prices are down 6.4 percent this month, the most since October.
Germany is the third-largest buyer of copper, and Japan is fourth, according to the International Copper Study Group in Lisbon. Germany’s usage fell 11 percent last year, and Japan’s declined 1.7 percent, it said.
On the London Metal Exchange, copper for delivery in three months rose 0.9 percent to $6,809.50 a metric ton ($3.09 a pound).
Stockpiles in warehouses monitored by the LME fell 0.2 percent, the fourth consecutive decline.
Aluminum, lead, zinc, tin and nickel gained in London.