Copper Gains Most in Month After China Comments on RatesJoe Richter
Copper rebounded from the lowest price since 2010 as stronger U.S. housing and manufacturing data and signs of relief in a Chinese cash crunch eased concern that slowing economies would hurt demand.
Orders for U.S. durable goods rose 3.6 percent in May, exceeding the 3 percent estimate in a Bloomberg survey of economists, while sales of new homes jumped to the highest in almost five years, government reports showed today. China’s central bank provided liquidity to some financial institutions and said it will safeguard stability in markets. The U.S. and China are the top copper buyers.
“Pretty much every U.S. economic report was good, and there’s a much better tone to the market today than there has been,” Bill O’Neill, a partner at Logic Advisors in Upper Saddle River, New Jersey, said in a telephone interview. “There are still concerns about copper demand in China, but overall the market is more positive across the board.”
Copper futures for September delivery rose 1.6 percent to $3.076 a pound at 1:15 p.m. on the Comex in New York. Earlier, prices fell to $2.9855, the lowest since July 20, 2010. The metal has posted six straight weekly losses, the longest slump in a year.
Improving U.S. sentiment also helped boost copper, as a report from the New York-based Conference Board showed confidence among consumers climbed in June to the highest level in more than five years.
Stockpiles monitored by the London Metal Exchange fell 0.5 percent to 674,850 metric tons as orders to remove the metal from warehouses jumped 5.2 percent to a record 338,250 tons, data from the exchange showed today.
On the LME, copper for delivery in three months gained 1.9 percent to $6,795 a ton ($3.08 a pound).
Aluminum, nickel, zinc, lead and tin also climbed.