Copper Rises to One-Week High as Glencore Boosts Output-Cut Planby
Copper advanced to the highest in a week after Glencore Plc said it will cut more production of the metal at its mines through 2017.
The company, the world’s third-largest copper miner, said it will eliminate an additional 55,000 metric tons of output by the end of 2017. Prices also advanced as equities rose the most in seven weeks in China, the world’s biggest metals user.
“Finding support from very firm Chinese equity markets, metal prices are gaining across the board," Daniel Briesemann, an analyst at Commerzbank AG in Frankfurt, said in an e-mailed note. As producers including Freeport-McMoRan Inc. and Codelco also cut output or investment, "this suggests that the global copper market will tighten noticeably -- and it was not all that well-supplied in the first place," he said.
Copper for delivery in three months rose 0.2 percent to settle at $5,134 a ton ($2.33 a pound) at 5:51 p.m. local time on the London Metal Exchange, and earlier climbed as much as 1.9 percent, the most since Oct. 22. Prices reached $5,220, the highest since Oct. 28.
In New York, copper futures December delivery slid 0.3 percent to $2.3225 a pound on the Comex.
In September, Glencore said it would cut copper production from mines in Zambia and the Democratic Republic of Congo by 400,000 tons. It’s now raised that estimate to 455,000 tons. That would amount to 2.2 percent of last year’s global production of the metal, according to Commerzbank.
Shares in Glencore gained for a fourth session in London trading, and the Bloomberg World Mining Index reached a one-week high. Aluminum and tin gained on the LME, while nickel, lead and zinc fell.