Copper prices jumped the most in three weeks on signs that China, the world’s biggest user of industrial metal, will increase stimulus measures to support the economy. Tin touched a five-year low.
Premier Li Keqiang said this week that the government would take more targeted measures to boost the economy. A report on Wednesday showed that gross domestic product grew last quarter at the slowest pace since 2009. Chinese equities rallied to a seven-year high on Thursday. Aluminum, lead, nickel and zinc prices also climbed.
“Concerns about China’s economic growth normally would be a weight to the copper market,” David Meger, the director of metals trading at High Ridge Futures in Chicago, said in a telephone interview. “However, on the back of the most-recent news, there are lots of stories about China being hopeful for some type of stimulus package.”
Copper for delivery in three months rose 1.8 percent to settle at $6,060 a metric ton ($2.75 a pound) at 5:54 p.m. on the London Metal Exchange, the biggest gain since March 20.
China’s economy expanded 7 percent last quarter. In March, industrial production rose 5.6 percent from a year earlier, the smallest increase since November 2008.
Copper futures for July delivery climbed 2.1 percent to $2.7675 a pound on the Comex in New York.
Tin declined 5.4 percent in London to $14,995 a ton, after dropping to $14,705, the lowest since November 2009.