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 Advances to Three-Week High on China’s Record New Credit

Feb. 17 (Bloomberg) -- Copper reached a three-week high in New York after China’s new credit gained to a record, supporting demand prospects in the world’s biggest user of the metal.

Aggregate financing was 2.58 trillion yuan ($425 billion) last month, China’s central bank said Feb. 15. The data followed better-than-estimated trade figures, suggesting officials can limit the scale of any economic slowdown. Chinese manufacturing contracted again this month, economists surveyed by Bloomberg said before a private gauge due Feb. 20.

Today’s session “showed the power and importance of the positive Chinese headline as credit conditions imply growth will continue to be massaged,” Mark Newson-Smith, head of metal sales at Xconnect Trading Ltd. in London, said in a report.

Copper for delivery in March added 0.5 percent to $3.282 a pound by 12:51 p.m. on the Comex in New York, where floor trading is closed today for the Presidents’ Day holiday. Prices touched $3.32, the highest since Jan. 23, and exceeded the 100-day moving average at about $3.276. Copper for delivery in three months rose 0.3 percent to $7,172.50 a metric ton by the close on the London Metal Exchange.

Stockpiles of copper monitored by the LME, at a 14-month low, slid 1 percent to 296,025 tons, daily data showed. Metal for immediate delivery traded as much as $38 above the contract for delivery in three months. Higher prices for earlier deliveries, or backwardation, usually signal limited supply.

“LME inventory declines reflect stocks shifting off market rather than a deficit market” because of Chinese financing deals, Goldman Sachs Group Inc. analyst Max Layton wrote in a report today. “Since we do not expect these deals to end anytime soon, LME spread tightness is very likely to persist and LME stocks are likely to continue to move off market.”

Goldman Sachs retained its “cautious view” on copper, saying the market is headed for an oversupply and forecasting LME prices will fall to $6,600 a ton in six months.

Money managers more than doubled their net-short position in Comex copper, or bet on lower prices, to 15,792 contracts in the latest week, government data show.

Tin reached the highest intraday price since Dec. 10 in London. Nickel, lead and zinc gained as aluminum fell.

To contact the reporters on this story: Maria Kolesnikova in London at mkolesnikova@bloomberg.net; Agnieszka Troszkiewicz in London at atroszkiewic@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@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.