Copper Gains Most in Three Weeks on China Stimulus OutlookJoe Deaux and Whitney McFerron
Copper prices jumped the most in three weeks on signs that China, the world’s biggest user of industrial metal, will increase stimulus measures to support the economy. Tin touched a five-year low.
Premier Li Keqiang said this week that the government would take more targeted measures to boost the economy. A report on Wednesday showed that gross domestic product grew last quarter at the slowest pace since 2009. Chinese equities rallied to a seven-year high on Thursday. Aluminum, lead, nickel and zinc prices also climbed.
“Concerns about China’s economic growth normally would be a weight to the copper market,” David Meger, the director of metals trading at High Ridge Futures in Chicago, said in a telephone interview. “However, on the back of the most-recent news, there are lots of stories about China being hopeful for some type of stimulus package.”
Copper for delivery in three months rose 1.8 percent to settle at $6,060 a metric ton ($2.75 a pound) at 5:54 p.m. on the London Metal Exchange, the biggest gain since March 20.
China’s economy expanded 7 percent last quarter. In March, industrial production rose 5.6 percent from a year earlier, the smallest increase since November 2008.
Copper futures for July delivery climbed 2.1 percent to $2.7675 a pound on the Comex in New York.
Tin declined 5.4 percent in London to $14,995 a ton, after dropping to $14,705, the lowest since November 2009.