Copper Rises as Concern Eases That Global Economy Is Faltering
Copper rose for the fourth time in five sessions as concern eased that the U.S. and global economies are faltering.
U.S. manufacturing climbed in July by the most this year, and Chinese industrial output jumped 14 percent. Most industrial metals and raw materials gained today. China is the world’s leading copper user, followed by the U.S.
“China is growing fairly robustly, and manufacturing will rebound across the world,” Bart Melek, an analyst at TD Securities in Toronto, said in a telephone interview. “The prospect for the metal looks pretty good.”
Copper futures for December delivery gained 3.8 cents, or 0.9 percent, to close at $4.053 a pound at 1:11 p.m. on the Comex in New York. The price gained 3.6 percent since Aug. 10.
The metal has climbed 21 percent in the past year as mining companies struggled to keep pace with rising consumption.
“Supply-and-demand dynamics” will drive prices, “and when there is a bit more certainty, we’ll have more risk trade happening,” Melek said.
Copper may average $4.30 in 2012, compared with a projected $4.24 in 2011, he said. The metal has averaged $4.28 this year.
On the London Metal Exchange, copper for delivery in three months climbed $135, or 1.5 percent, to $8,965 a metric ton ($4.07 a pound).
Aluminum, lead, nickel and zinc also rose in London. Tin fell.
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