Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Copper Rises on Speculation Fed to Maintain U.S. Stimulus

Oct. 28 (Bloomberg) -- Copper prices in London rose for the third straight session amid speculation that the Federal Reserve will maintain economic stimulus in the U.S., the second-biggest consumer of the metal.

Fed policy makers, who begin a two-day meeting tomorrow, will wait until March to scale back on debt purchases of $85 billion a month, a Bloomberg survey showed this month. Stockpiles of copper monitored by the London Metal Exchange posted the longest slump since July 2009.

“The Fed has put a tailwind behind these markets,” Michael Smith, the president of T&K Futures & Options in Port St. Lucie, Florida, said in a telephone interview. “It’s just a matter of time before we start to see more inflation in commodities, including copper. Once we start to see more steady growth worldwide, you’re going to see copper going higher.”

Copper for delivery in three months gained 0.1 percent to settle at $7,190 a metric ton ($3.26 a pound) at 5:50 p.m. local time on the LME. The metal rose 0.2 percent in the previous two sessions.

Inventories monitored by the LME declined 0.6 percent to 478,200 metric tons, the lowest since March. They dropped for the 38th straight session. China is the top consumer of copper.

In New York, copper futures for December delivery closed unchanged at $3.269 a pound on the Comex. The metal pared gains after reports showed slowing factory output and a drop in home purchases in the U.S. The price has declined 11 percent this year.

Aluminum, lead, nickel and zinc gained in London. Tin fell.

To contact the reporter on this story: Joe Richter in New York at jrichter1@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.