Copper Rises, Erasing Earlier Declines, Ahead of China HolidaysJae Hur
Copper advanced for a second day, reversing earlier losses, as some investors closed their bets on falling prices before a five-day holiday in China.
The metal for delivery in three months on the London Metal Exchange rose as much as 0.5 percent to $7,235 a metric ton, erasing an earlier drop of as much 0.4 percent. It traded at $7,231.50 at 4:10 p.m. in Tokyo and has gained 1.9 percent this month and 7.2 percent this quarter.
Markets in China will be closed from Oct. 1 to Oct. 7 for National Day holidays. Stockpiles of copper monitored by the LME fell for a 15th session to 547,550 tons, the lowest since March 19, daily exchange figures showed yesterday. Orders to remove the metal from warehouses dropped 0.2 percent to 266,475 tons.
“It’s short-covering before China’s holidays,” said Kazuhiko Saito, an analyst at commodities broker Fujitomi Co. in Tokyo. Hwang Il Doo, a senior trader at Korea Exchange Bank Futures Co. in Seoul, said traders were closing positions ahead of the holidays, and that the drop in LME stockpiles also provided support for copper.
Futures for delivery in December rose 0.9 percent to $3.3015 a pound on the Comex in New York. Metal for delivery in December on the Shanghai Futures Exchange added 1 percent to close at 52,280 yuan ($8,543) a ton.
On the LME, aluminum, nickel, lead, zinc and tin also gained.