Copper Rises for Second Day as Metals Gain on China Demand Hope
Copper climbed for a second day as industrial metals rose amid speculation that demand in China, the largest user, will increase in March.
The metal for delivery in three months rose as much as 0.6 percent to $7,880 a metric ton on the London Metal Exchange, before trading at $7,871.25 at 11:13 a.m. Shanghai time. The May contract on the Comex in New York gained 0.4 percent to $3.5735 per pound while futures for June delivery on the Shanghai Futures Exchange rose 0.3 percent 57,320 yuan ($9,198) a ton.
Consumption of metals usually rises in March as fabricators resume operations after the Chinese New Year holidays and temperatures rise in northern parts of the country. Refined copper imports gained to 243,174 tons in January from 238,828 tons in December, customs data showed yesterday.
“Given the upcoming seasonal demand, prices should find some support at the current levels,” He Shan, an analyst at Galaxy Futures Co., said by phone from Beijing. “Still, concerns over Europe and China’s property controls are limiting demand.”
The government completed a draft of property-control measures, which will be released after the central government issues more detailed policies, Shanghai Securities News reported today. The city of Guangzhou also plans to announce housing curbs, the report said.
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