Copper Climbs Above $8,000 a Ton for the First Time Since AprilGlenys Sim
Copper advanced above $8,000 a metric ton for the first time since April as a weaker dollar and an acceleration in China’s manufacturing buoyed the outlook for commodities. Tin rose to the highest level since May 2008.
Copper for three-month delivery on the London Metal Exchange increased as much as 1.1 percent to $8,038 a metric ton, the highest price since April 12, and traded at $8,028 at 3:27 p.m. Singapore time. January-delivery copper on the Shanghai Futures Exchange rose 0.8 percent to 60,850 yuan ($9,101) a ton.
“Commodities will continue to be in the hands of the dollar and economic data,” Xi Bingrong, an analyst at Huishang Futures Co., said from Anhui. “The expectation is for dollar weakness in the months ahead and that will keep prices supported.” A weaker U.S. currency reduces the cost of dollar-denominated commodities for holders of other monies.
The dollar dropped for a fourth day against a six-currency basket to the weakest level since Jan. 28. Manufacturing in China grew for a second straight month to a five-month high in September, a purchasing managers’ index released today by HSBC Holdings Plc and Markit Economics showed.
Copper stockpiles in London Metal Exchange warehouses dropped to 375,275 tons yesterday, the lowest level since November. Shanghai inventories declined to 94,365 tons last week.
The Institute for Supply Management-Chicago Inc. is forecast to report tomorrow that its business barometer fell to 55.7 this month from 56.7 in August, according to the median estimate of economists in a Bloomberg News survey. A level greater than 50 signals expansion.
“Economic data also suggests consumption has been robust so far this year and this will help prices to rally,” Xi said.
Copper, used in construction and automobiles, has jumped 23 percent since the end of June, is set for its best quarterly performance since the period ending Sept. 30, 2009, as the Dollar Index dropped 8.5 percent. The metal has recovered from its worst quarter since 2008 as falling stockpiles improved the demand outlook, said Xi.
Tin in London gained as much as 1 percent to $24,250 a ton, the highest price since May 2008 and last traded at $24,100. Aluminum rose 1 percent to $2,332.25 a ton, zinc gained 0.7 percent to $2,235.25 a ton, lead climbed 1.4 percent to $2,313 a ton and nickel advanced 0.9 percent to $23,375 a ton by 3:31 p.m. in Singapore.
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