Copper Climbs as ‘Good News’ From G-8 Overshadows China Concernby and
Reports show German industrial production, U.S employment rose
China copper imports slide to 11-month low in July: customs
Copper and other industrial metals advanced as signs of economic resilience in Germany and the U.S. outweighed demand concerns from China.
In Germany, the largest copper user behind China and the U.S., industrial production increased in June, government data showed Monday, signaling Europe’s largest economy gained momentum ahead of the U.K.’s vote to exit the European Union. In the U.S., data released Friday showed employment jumped in July for a second month and wages climbed. Those reports overshadowed a decline in China’s copper imports to an 11-month low in July.
“The metals market does seem to be momentarily more responsive to good news than bad as it shrugs off sluggish data out of China for July,” Michael Turek, the head of base metals at BGC Partners Inc. in New York, said in an e-mail. “The complex seems encouraged by the bellwether U.S. economy which is expected to grow.”
Copper futures for delivery in September advanced 0.5 percent to settle at $2.165 a pound at 1:19 p.m. on the Comex in New York, the first gain in four sessions.
China’s purchases of unwrought copper and products fell for a fourth month to 360,000 metric tons in July, the lowest since August 2015, customs data show. Imports receded as the nation struggles to clear its surplus after record purchases in the first half spurred by a credit boom and property rebound.
Nickel for delivery in three months on the London Metal Exchange rose 0.5 percent to $10,770 a metric ton, the highest close since in almost a year. Prices rose for a second session after the Philippines, the world’s biggest producer of nickel ore, started auditing miners and ordered small-scale producers to stop operations as it follows through on a vow to clean up the industry.
Zinc, copper and lead also advanced on the LME, while aluminum and tin declined.