Moscow - Copper climbed to the highest in three weeks as strong economic data from China fuelled speculation of strengthening demand. A measure of London-listed mining stocks advanced for the first time in four days.
Copper rose 1.2 percent to $4,703.50 a metric ton as of 9.50am on the London Metal Exchange and touched $4,713, the highest since August 24. The other major metals advanced and Glencore shares gained as much as 4.8 percent, the biggest increase in two months.
“Copper is supported by good buying interest following the good Chinese figures and the less chance of a rate rise by the Fed this month,” Richard Fu, the Asia and Pacific chief at Amalgamated Metal Trading in London, said by email.
China’s broadest measure of new credit exceeded estimates in August, rebounding from a month earlier and bolstering evidence that growth is stabilising. Other Chinese reports this week, such as factory output, investment and retail sales, all exceeded economist estimates - a sign of improving growth in the world’s biggest consumer of metals.
Copper buying
Users, including power-wiring companies, are stepping up purchases of copper ahead of China’s autumn festival after prices fell, Xu Maili, an analyst with Everbright Futures, said by phone from Shanghai. The three-day Chinese holiday starts on Thursday.
Copper stockpiles fell in Shanghai and London. The Yangshan copper premium, a barometer of supply and demand in bonded warehouses in the city, has also recovered from a record low, indicating increased demand for imports.
Other industrial metals advanced. Nickel rose even after the Philippines deferred releasing the results of a mining audit until next week. Prices added 0.7 percent to $9,925 a ton.
Glencore added 4.6 percent to 185 pence. Societe Generale SA raised its share-price estimate to 240 pence, citing supportive commodity prices and the possibility that the company may resume dividend payments next year.
* With assistance from Winnie Zhu
BLOOMBERG