Copper Trades Near Four-Month High After U.S., China Manufacturing Data

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

2 Sep 2010

Copper in London traded near a four- month high, extending yesterday’s advance, after better-than- expected economic data in U.S. and China, the two biggest consumers, boosted the demand outlook. Copper in Shanghai gained. The metal for three-month delivery increased as much as 0.5 percent to $7,643 a metric ton on the London Metal Exchange, and traded at $7,616.50 at 10:12 a.m. in Shanghai. Copper for December delivery on Shanghai Futures Exchange gained 0.6 percent to 59,930 yuan ($8,814) a ton.
“The U.S. and China manufacturing data set the keynote for the macro environment,” said Fang Junfeng, an analyst at China International Futures (Shanghai) Co. “Copper is now more likely to advance than fall.”
The Institute for Supply Management’s U.S. manufacturing index increased to a three-month high of 56.3 in August from 55.5 in July, as factories added workers and cranked up production. The figure was projected to drop to 52.8, according to the median forecast in a Bloomberg News survey.
China’s government-backed purchasing managers’ index rose to 51.7 in August from 51.2 in July, beating a median estimate of 51.5 by a Bloomberg News survey of 17 economists.
“In terms of actual downstream demand, it’s not bad at all,” Fang said. High temperatures this summer kept air- conditioner demand robust in China, he said.
If investment demand for commodities remains robust, copper in Shanghai is likely to challenge the highest level touched earlier this year, said HNA Topwin Futures in a report today. Copper futures in Shanghai hit a year-to-date high of 64,300 yuan a ton on April 12.
Aluminum in London declined 0.6 percent to $2,095.50 a ton, zinc gained 0.8 percent to $2,149.75 a ton, and lead increased 0.8 percent to $2,131 a ton. Nickel advanced 0.7 percent to $21,200 a ton, and tin hadn’t traded yet.

Source: Bloomberg