Copper Set for Monthly Gain Ahead of China PMI, StrikesJae Hur
Copper is poised for the first monthly advance since July before an official gauge of Chinese manufacturing growth and on speculation that planned strikes at mines in Indonesia and Peru may disrupt supplies.
The metal has risen 1 percent in October. A manufacturing purchasing managers’ index reading for October in China, the biggest user, will be 51.2 compared with 51.1 in September, according to a Bloomberg News survey of economists before the data tomorrow. A number above 50 signals economic expansion. The U.S. economy capped its best six months of growth in a decade last quarter, data showed yesterday.
“Investors are looking for positive economic data from China tomorrow after yesterday’s stronger-than-expected U.S. gross domestic product,” Chae Un Soo, a metals trader at Korea Exchange Bank Futures Co., said by phone from Seoul today. “Copper will get some support from planned strikes at mines.”
Possible strikes at the Grasberg mine in Indonesia and at the Antamina mine in Peru may disrupt 3.1 percent of world copper production, according to Bloomberg Intelligence.
Copper for delivery in three months on the London Metal Exchange traded little changed at $6,736 a metric ton at 10:30 a.m. in Tokyo after closing down 1.1 percent at $6,740 yesterday. In New York, futures for December delivery were at $3.061 a pound, while the January contract in Shanghai was at 47,490 yuan ($7,769) a ton.
Nickel in London fell 0.4 percent to $15,710 a ton and was poised for a second monthly drop.
On the LME, aluminum declined, while lead climbed and zinc was little changed. Tin hadn’t traded.