Industrial Metals Advance Amid Speculation on China PolicyBloomberg News
Industrial metals climbed on speculation that China will take measures to support economic growth after an unexpected drop in exports.
Copper for delivery in three months on the London Metal Exchange gained as much as 0.9 percent to $6,792 a metric ton and was at $6,780 at 3:32 p.m. in Shanghai. Aluminum, lead, nickel, zinc and tin also advanced.
China’s benchmark Shanghai Composite Index gained as much as 2.2 percent amid speculation that the People’s Bank of China will cut reserve requirements, according to Wang Zheng, Shanghai-based chief investment officer at Jingxi Investment Management Co., which manages $120 million. The country’s total exports fell 3.1 percent from a year earlier in June, and imports declined 0.7 percent, data from the General Administration of Customs showed today.
“The strong rally in the stocks market in the afternoon had some spillover effect on metals,” Liang Lijuan, an analyst at Cofco Futures Co., said by phone from Beijing.
Unwrought copper and copper products imports by China climbed to a nine-month high of 379,951 tons in June, data from the customs agency showed today. LME copper stockpiles in Malaysia’s Johor fell 1.9 percent to 256,350 tons yesterday. The drop was the biggest since Jan. 20, 2012.
Copper for delivery in November on the Shanghai Futures Exchange fell 0.6 percent to 48,630 yuan ($7,928) a ton. Metal for delivery in September on the Comex rose 0.5 percent to $3.0795 a pound.