Copper futures rose the most in five weeks as inventories capped the longest slump since 2009 and on signs of increasing demand in China, the world’s biggest user.
Stockpiles tracked by the London Metal Exchange dropped for the 40th straight session to the lowest since March. China’s refined copper consumption will probably rise 6.5 percent in 2014, and demand will exceed supply by 1.9 million metric tons, Yang Changhua, an analyst at Beijing Antaike Information Development Co., said yesterday.
Copper is “clearly finding support at present from robust demand,” Commerzbank AG analysts including Frankfurt-based Daniel Briesemann said in a report. “Stocks in the warehouses of the LME are declining continuously.”
On the Comex in New York, copper futures for December delivery climbed 1.4 percent to settle at $3.3255 a pound at 1:19 p.m, the biggest gain for a most-active contract since Sept. 19. Trading was 35 percent above the average in the past 100 days for this time, according to data compiled by Bloomberg.
Volkswagen AG, Europe’s largest carmaker, said vehicle deliveries to customers are set to climb this year. The International Copper Study Group says an average mid-size auto contains about 50 pounds of the metal.
On the LME, copper for delivery in three months rose 1.3 percent to $7,290 a metric ton ($3.31 a pound). Aluminum, lead, nickel and zinc also advanced. Tin declined.