Industrial Metals Rise as China’s Trade Data Beats ForecastsAlex Davis
Industrial metals advanced amid speculation demand will be sustained as trade data from China, the biggest user, beat expectations and Premier Li Keqiang said the nation sees growth this year hitting its 7.5 percent target.
Nickel climbed as much as 1.7 percent in London, while copper rose 1 percent. Exports in September rose 15.3 percent from the same month last year, the most since February 2013 and beating the 12 percent median estimate in a Bloomberg News survey before data from the country’s customs administration today. Imports jumped 7 percent, against projections for a 2 percent decline. Though China may exceed or miss its growth target, it doesn’t “face a hard landing as some say,” Li said in a speech Oct. 11.
“The metal markets will take the data positively,” Daniel Hynes, a commodity strategist at Australia and New Zealand Banking Group Ltd., said by phone from Sydney. “You may see a little bit of a short-covering rally on the back of it.” Short covering refers to when traders buy contracts to close out bets on falling prices.
Nickel for delivery in three months was up 1.2 percent at $16,574 a metric ton on the London Metal Exchange at 3:42 p.m. in Hong Kong. The metal fell 1.8 percent to close at $16,375 a ton on Oct. 10.
Copper in London advanced 1 percent to $6,708 a ton. In New York, the contract for December was little changed at $3.0355 a pound, while in Shanghai the metal for the same month rose 1.3 percent to close at 47,850 yuan ($7,809) a ton.
On the LME, aluminum, zinc, tin and lead also climbed.