Industrial Metals Gain as China Manufacturing Meets Expectations
Copper gained as some investors said a slowdown in manufacturing in China, the biggest user, had been factored into prices after the biggest quarterly drop in almost two years. Aluminum, zinc, lead and nickel also climbed.
Copper for delivery in three months on the London Metal Exchange rose as much as 0.6 percent to $6,790 a metric ton and was at $6,769.25 by 11:08 a.m. in Shanghai. The price fell 10 percent in the second quarter, the most since the three months through September 2011.
The official Purchasing Managers’ Index was at 50.1 in June, according to data from the National Bureau of Statistics and China Federation of Logistics and Purchasing. The reading matched the median estimate in a Bloomberg News survey. Another index issued by HSBC Holdings Plc and Markit Economics stood at 48.2, compared with expectations for 48.3. Readings below 50 signal contraction.
“The slowdown in China has been priced in,” Wang Jingjing, an analyst at Founder Futures co., said by phone from Shanghai. “Copper is rebounding toward $7,000.”
China’s new home prices jumped in June by the most since they reversed declines in December, according to SouFun Holdings Ltd. (SFUN), the country’s biggest real estate website owner, citing their survey of 100 cities.
Copper for delivery in October on the Shanghai Futures Exchange climbed 0.4 percent to 48,790 yuan ($7,959) a ton.
Metal for delivery in September on the Comex was little changed at $3.062 a pound. Net-short positions, or wagers on falling Comex prices, held by funds expanded to 32,599 futures and options as of June 25 from 29,018 a week earlier, according to the U.S. Commodity Futures Trading Commission.
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