Copper Advances for Second Day on Optimism Demand Will IncreaseJae Hur
Copper climbed for a second day on optimism that demand will rise with manufacturing gains in China and the U.S., the world’s biggest users of industrial metals.
The metal for three-month delivery climbed as much as 0.7 percent to $8,103 a metric ton on the London Metal Exchange and was at $8,102.25 at 4:21 p.m. in Tokyo. Futures for delivery in May advanced 0.4 percent to close at 58,850 yuan ($9,454) a ton on the Shanghai Futures Exchange.
Orders for durable goods in the U.S. rose in December for an unprecedented fourth consecutive month, indicating manufacturing will keep improving in 2013. Standard Chartered Plc yesterday raised its forecast for China’s growth to 8.3 percent in 2013 from 7.8 percent previously.
With the rise in U.S. durable goods orders, “sentiment towards China is also improving,” said Nick Trevethan, senior commodities strategist at Australia & New Zealand Banking Group Ltd. in Singapore.
The Chinese Academy of Sciences forecast economic growth this year will accelerate to 8.4 percent, according to its annual outlook published on Jan. 26. China’s gross domestic product increased 7.8 percent last year, the least since 1999, according to government data.
“Still copper is facing some headwinds, in particular in terms of rising supply,” Trevethan said.
Copper output in Chile, the world’s biggest producing nation, will rise 3 percent to 5.6 million tons this year, exceeding a record 5.56 million tons set in 2007, according to estimates released yesterday by the government’s copper commission Cochilco.
The contract for delivery in March rose 0.6 percent to $3.6815 a pound on the Comex in New York. On the LME, aluminum, lead, zinc, nickel and tin also advanced.