Copper Climbs in London After Gains in China Signal More Demand
China’s exports rose 14.7 percent last month from a year ago and imports climbed 16.8 percent, data from the General Administration of Customs showed today. The nation accounts for more than 40 percent of global copper consumption. Prices jumped 6.2 percent on May 3 afte U.S. payrolls climbed.
“The U.S. recovery and improving Chinese international trade figures are supporting the copper price,” Pengjiang “Richard” Fu, director for Asian commodities trading at Newedge Group SA in London, said by e-mail today. “China’s data this month on money supply, inflation and new loans will be key to keeping the rally going.”
Copper for delivery in three months on the London Metal Exchange rose 0.9 percent to $7,333.25 a metric ton by 9:01 a.m. in London. Copper for July delivery increased 0.8 percent to $3.33295 a pound on Comex in New York.
Inbound shipments of refined copper, alloy and products by China were 295,799 tons last month, customs data showed today. That was the lowest since June 2011, and was down 7.4 percent from March, according to data compiled by Bloomberg.
Goldman Sachs Group Inc. is still bullish on copper near- term, Max Layton, an analyst at the bank, said in a report dated yesterday, citing declines in inventories and an anticipated improvement in sentiment on Chinese demand. The bank kept its three-month forecast at $7,500 a ton, six-month at $8,000 and 12-month at $7,000.
Aluminum, tin, zinc, nickel and lead also advanced in London.
To contact the reporter on this story: Agnieszka Troszkiewicz in London at email@example.com
To contact the editor responsible for this story: Claudia Carpenter at firstname.lastname@example.org