Copper gained to the highest level in a week as the Chinese government sought to spur its economy and Germany pledged to consider growth measures for Europe, improving the outlook for metals.
The three-month delivery contract climbed as much as 1.1 percent to $7,816 a metric ton on the London Metal Exchange and was at $7,777.75 by 3:13 p.m. Shanghai time. July-delivery metal added 0.4 percent to $3.5145 a pound on the Comex.
China plans to speed up approval of infrastructure projects to improve the economy, the China Securities Journal reported today, citing an unidentified person. Premier Wen Jiabao called for “putting stabilizing growth in a more important position,” in remarks published May 20 by the official Xinhua News Agency.
“Stimulus measures such as speeding up the approval of infrastructure projects can have significant implications in terms of demand prospects,” Yang Xiaoguang, an analyst at Jinrui Futures Co., said by phone from Shenzhen. “We expect the Chinese economy to bottom in the second quarter and rebound later this year.”
European leaders will do “everything necessary” to keep Greece in the 17-nation euro, German Finance Minister Wolfgang Schaeuble said yesterday. The September-delivery contract on the Shanghai Futures Exchange closed little changed at 55,850 yuan ($8,837) a ton.
Copper demand in China is expected recover in the second half of the year as the world’s biggest metals consumer takes steps to boost its economy, Charlie Sartain, chief executive officer of Xstrata Plc (XTA)’s copper unit, said in Sydney today.
On the LME, lead gained 0.5 percent to $1,950 a ton and tin rose 1 percent to $19,450 a ton. Nickel was little changed at $17,185 a ton, zinc climbed 0.2 percent to $1,909 a ton and aluminum fell 0.2 percent to $2,044 per ton.
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