Copper in London rose for a second straight day on signs of increased demand after manufacturing and construction spending grew in the U.S., the world’s second-biggest metals user.
A gauge of business conditions in the New York City area rose last month to the highest since February, according to data Thursday from the Institute for Supply Management-New York. A day earlier, the ISM said U.S. manufacturing expanded at the fastest pace in five months, with fabricated metals among 11 industries showing growth. Copper has dropped 8 percent this year on concern that global demand will slow.
“People are beginning to see an improvement in consumption on the horizon,” Peter Thomas, a senior vice president at Zaner Group LLC in Chicago, said in a telephone interview. “If we continue to get some good data, we may see some improvement in sentiment.”
Copper for delivery in three months climbed 0.3 percent to settle at $5,795 a metric ton ($2.63 a pound) at 5:51 p.m. on the London Metal Exchange. Prices rose 0.2 percent on Wednesday.
The commodity last month capped the longest run of quarterly declines since 2001 on concern that demand is slowing in China, the biggest user.
U.S. construction spending in May was the highest since October 2008, a government report showed Wednesday.
“We see some higher risk appetite,” Daniel Briesemann, an analyst at Commerzbank AG in Frankfurt, said by e-mail. “The U.S. economy clearly seems to have gathered pace.”
Lead and nickel also advanced in London, while tin, zinc and aluminum declined.
In New York, copper futures for delivery in September gained less than 0.1 percent to settle at $2.631 a pound on the Comex.