Copper Rises for Third Day as Oil Rallies to Highest in a Month

Copper in London advanced for a third day after crude oil climbed to the highest level in almost a month, increasing the expense of mining and processing metals.

The metal gained as much as 1.5 percent after closing Monday at the highest in a week. Oil advanced for a fourth day in the longest winning streak since August amid strikes at U.S. refineries that account for 10 percent of the nation’s capacity. Oil traded in New York has risen 13 percent since Jan. 28.

“Certainly the rebound in the energy markets has helped improve sentiment in general in the commodity markets,” said Daniel Hynes, a senior commodity strategist at Australia & New Zealand Banking Group Ltd. “That’s certainly feeding through now into base metals.”

Copper for delivery in three months on the London Metal Exchange advanced 1.2 percent to $5,565 a metric ton ($2.52 a pound) at 3:12 p.m. in Hong Kong. In New York, futures for March delivery gained 1.4 percent to $2.524 a pound, while the metal for April in Shanghai rose 1.2 percent to close at 40,760 yuan ($6,514) a ton.

Prices in London have fallen 12 percent this year on concern that demand is slowing in China, the world’s largest consumer, as global supplies are rising amid an oil-led slump in commodities. China’s official manufacturing Purchasing Managers’ Index fell to 49.8 last month from 50.1 in December, the first contraction in more than two years, according to figures released Sunday in Beijing.

Copper has fluctuated between gains and losses in the past week as pressure grows on China’s policy makers for further stimulus. That’s sent a measure of its price volatility over 100 days up about 30 percent this year to the highest since Oct. 2013, data compiled by Bloomberg show.

Tin Exports

Tin exports from Indonesia will probably extend a decline in 2015 from the lowest level in at least eight years as the largest supplier of the metal tightens curbs on mining. Shipments may drop 20 percent to 61,000 tons from 75,925 tons in 2014, according to the median of estimates from nine smelter executives, analysts and miners compiled by Bloomberg. The metal in London rose 0.8 percent to $19,000 a ton.

Also on the LME, aluminum, zinc and lead advanced while nickel was little changed.

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