Copper Climbs as China May Take Steps to Revive Growth
Copper rose after data showed China’s inflation cooled for a fourth month in July and industrial output missed analysts’ estimates, raising expectations of further measures to revive growth in the world’s largest user.
The three-month contract advanced 0.3 percent to $7,575 a metric ton on the London Metal Exchange at 3 p.m. in Shanghai. Futures for September-delivery climbed 0.4 percent to $3.4365 a pound on the Comex.
“The weaker-than-expected industrial production means the demand is weak,” He Shan, an analyst at Galaxy Futures Co., said by phone from Beijing. “In the meantime, expectations of growth-supportive measures continue to linger.”
Industrial output rose 9.2 percent in July from a year earlier, the National Bureau of Statistics said today. The growth compares with the 9.7 percent median estimate in a Bloomberg News survey of 32 analysts and a 9.5 percent increase in June. The consumer prices rose 1.8 percent from a year earlier, the bureau said. That compares with the 1.7 percent median forecast in a Bloomberg News survey of 33 economists and a 2.2 percent gain in June.
“The good news is that low inflation rates provides room for further growth-supportive measures,” Li Ye, an analyst at Shenyin & Wanguo Futures Co., said by phone from Shanghai.
Copper for delivery in November gained 0.8 percent to close at 55,160 yuan ($8,685) a ton on the Shanghai Futures Exchange.
On the LME, lead advanced, while aluminum, zinc, and nickel declined.
To contact Bloomberg News staff for this story: Helen Sun in Shanghai at firstname.lastname@example.org
To contact the editor responsible for this story: James Poole at email@example.com