Copper Seen Gaining After German Retail Sales; Aluminum Climbs
Copper may advance in London after a report of increased retail sales in Germany, bolstering prospects for metals demand. Aluminum rose.
German retail sales climbed 0.8 percent from April, the Federal Statistics Office in Wiesbaden said today. Japanese industrial production also beat estimates. Copper is heading for quarterly and monthly declines, and some traders who bet on lower prices may buy back contracts in short-covering.
“The German figure definitely helped the copper price,” said Richard Fu, director for Asian commodity trading at Newedge Group SA in London. “I would say short covering month end, some bargain hunters, plus good German and Japanese figures are supporting copper prices.”
Copper for delivery in three months was little changed at $6,748.25 a metric ton by 9:57 a.m. on the London Metal Exchange. Prices are down 7.7 percent this month and 10 percent for the second quarter, the most since the 2011 third quarter.
Germany is the third-largest buyer of copper and Japan is fourth, according to the International Copper Study Group in Lisbon. Germany’s usage fell 11 percent last year and Japan’s declined 1.7 percent, it said.
Copper futures for September delivery fell 0.1 percent to $3.056 a pound on the Comex in New York. Aluminum gained 0.3 percent while nickel fell 0.3 percent. Copper stockpiles in warehouses monitored by the LME fell 0.3 percent, the fourth consecutive decline.
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