Bloomberg News

Copper Extends Biggest Base Metals Rally in 2 Years: LME Preview

October 24, 2011

Oct. 24 (Bloomberg) -- Copper advanced for a second day in London, helping to extend the biggest rally in industrial metals in two years, as European leaders’ plans to aid banks and preliminary China data boosted optimism about the outlook for economic growth.

Market News:

-- Asian shares advanced the most in two weeks and copper led a rally in commodities amid signs of growth in the global economy and after European leaders inched toward a revamped strategy to contain the region’s debt crisis. NSN LTK3LP0YHQ0X <GO>

-- European leaders ruled out tapping the European Central Bank’s balance sheet to boost the region’s rescue fund and outlined plans to aid banks, inching toward a revamped strategy to contain the Greece-fueled debt crisis. NSN LTJZQ807SXKX <GO>

-- China’s manufacturing may expand in October for the first time in four months, snapping the longest contraction since 2009, after a preliminary index of purchasing managers showed a rebound in new orders and output. NSN LTK18L6JTSE8 <GO>

-- Foreign-exchange strategists have ceased cutting forecasts for the euro as European government officials intensify efforts to end the region’s crisis and traders pare bets for a collapse in the currency. NSN LTJZVH6JIJUX <GO>

-- U.S. companies’ hiring plans reflect the worst employment outlook since January 2010 as demand slows in the world’s largest economy, a private survey showed. NSN LTFOPS1A74E9 <GO>

-- There is a 50 percent chance of a recession in the U.S., the U.K. and eurozone economies in the next 12 months, said Nouriel Roubini, co-founder and chairman of Roubini Global Economics LLC. NSN LTK2I70YHQ0X <GO>

-- Hedge funds increased bullish bets on commodities by the most since August on mounting optimism the global economy will avoid another recession, boosting prospects for raw-materials demand. NSN LTK0DA07SXKX <GO>

Metals News:

-- OAO GMK Norilsk Nickel, the world’s largest producer of the metal, said output gained 23 percent in the third quarter from the previous three months to 79,808 metric tons. Copper production increased to 95,075 tons from 90,451 tons. NSN LTK05U6JTSE8 <GO>

-- Refined copper imports by China were 275,499 metric tons in September, the General Administration of Customs said in an e- mailed statement today. Shipments were 235,509 tons in August and 241,771 tons in September last year. NSN LTK47V1A74E9 <GO>

-- Aluminum prices are “close to” the costs of production after the slump in the commodities market, Luo Jianchuan, president of Aluminum Corp. of China Ltd., said in a statement posted on the company’s website today. NSN LTJXJE6JTSEA <GO>

-- OAO Chelyabinsk Zinc boosted output of the metal 1.8 percent to 121,900 metric tons from a year earlier, the Russian company said today in a statement. NSN LTK3L16TTDS7 <GO>

-- Hedge-fund managers and other large speculators decreased their net-short position in New York copper futures in the week ended Oct. 18, according to U.S. Commodity Futures Trading Commission data. NSN LTFL410J1HF4 <GO>

-- Chinese steel prices plunged the most last week since the 2008 global economic crisis, signaling mills may further cut production of the alloy used in automobiles and construction and reduce demand for iron ore. NSN LTJXLT0D9L35 <GO>

--Editors: John Deane, Claudia Carpenter

To contact the reporter on this story: Maria Kolesnikova in London at mkolesnikova@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net


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