Copper Climbs Third Day on Demand Outlook in China, U.S.Alex Davis
Copper gained for a third session amid speculation that demand will stabilize in China and the U.S., the world’s largest metals consumers.
The contract for delivery in three months on the London Metal Exchange climbed as much as 0.3 percent to $6,714 a metric ton and traded at $6,702 at 3:00 p.m. in Hong Kong. It rose 0.5 percent yesterday, the most in two weeks.
U.S. industrial output increased 0.6 percent in May, beating estimates, according to data released yesterday. China’s central bank extended a reserve-requirement cut to some national lenders including China Merchants Bank Co. and Industrial Bank Co. as officials try to support growth.
China’s steps to shore up economic growth are “easing worries” about slowing copper demand, Chae Un Soo, a metals trader at Korea Exchange Bank Futures Co., said by phone from Seoul. This together with the improving data from the U.S. was supporting copper prices, he said.
In New York, the futures contract for September rose 0.2 percent to $3.051 a pound, while in Shanghai metal for delivery in August advanced 0.3 percent to close at 48,190 yuan ($7,732) a metric ton. Nickel fell on the LME, while tin advanced. Aluminum, zinc and lead were little changed.