Copper Rises to One-Week High as Metals Gain on China PMI
Copper rose to the highest level in almost a week after China’s official manufacturing data unexpectedly strengthened, suggesting demand from the world’s largest consumer is improving.
Metal for delivery in three months gained as much as 1 percent to $6,950 a metric ton on the London Metal Exchange, the highest since July 26, and was at $6,938 at 10 a.m. in Shanghai. Aluminum, lead, nickel and zinc also increased.
The Purchasing Managers’ Index was at 50.3, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today. That compared with the 49.8 median forecast of 35 analysts in a Bloomberg News survey and June’s 50.1 level. Readings above 50 indicate expansion.
“We are quite surprised to see the reading standing above 50,” said Liang Lijuan, an analyst at Cofco Futures Co. in Beijing. “Copper is unlikely to fall below $6,600 now that the Chinese government has pledged to stabilize growth.”
Copper for delivery in November gained 0.9 percent to 49,640 yuan ($8,099) a ton on the Shanghai Futures Exchange. Metal for delivery in September climbed 0.6 percent to $3.1355 a pound on the Comex in New York.
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