Copper Gains as Economy Improves While China Stockpiles Decline
By Jae Hur - Sep 2, 2013 7:13 PM PT .
Copper advanced for a second day as manufacturing in China and Europe expanded while inventories fell in bonded warehouses in Asia’s biggest economy.
Metal for delivery in three months on the London Metal Exchange climbed as much as 0.7 percent to $7,285 a metric ton and traded little changed at $7,242.50 at 10:46 a.m. in Tokyo. The price rose 1.9 percent yesterday, the most since Aug. 8.
Holdings of copper in bonded warehouses in China, which aren’t officially reported, slid to 350,000 tons from 1.1 million tons about a year ago, Bank of America Merrill Lynch said. A euro-area manufacturing index increased more than economists forecast while a weekend report showed manufacturing in China, the world’s biggest consumer of metals, grew last month to a 16-month high.
“China is pushing the market higher as people expect the country will buy more in coming months with its improving economy and lower bonded-warehouse stockpiles,” said Hiroyuki Kikukawa, the general manager of research at Nihon Unicom Inc. in Tokyo.
Futures for delivery in December on the Shanghai Futures Exchange rose as much as 0.5 percent and traded little changed at 52,450 yuan ($8,571) a ton. Metal for delivery in December was 1.9 percent higher at $3.295 a pound on the Comex in New York after the U.S. Labor Day holiday yesterday.