Copper rose for a fourth day in London on speculation China, the world’s biggest consumer of the metal, will take more steps to stoke economic growth.
China’s finance ministry said it will subsidize the use of energy-saving products, a further step in state efforts to stimulate the world’s second-largest economy. The government has “tremendous scope” for avoiding a so-called hard landing, Art Woo, a Hong Kong-based director at Fitch Ratings, said today.
“The likelihood of more stimulus from the Chinese authorities has risen,” Martin Arnold, an analyst at ETF Securities Ltd. in London, said in a report.
Copper for three-month delivery gained 0.7 percent to $7,735 a metric ton by 9:53 a.m. on the London Metal Exchange. Prices are down 7.9 percent this month, on course to retreat the most since September. Copper for July delivery rose 1.2 percent to $3.4885 a pound on the Comex in New York, where floor trading was closed yesterday for the Memorial Day holiday.
Promotion of energy-efficient flat-panel televisions and power-saving air conditioning is projected to fuel consumption of more than 135 billion yuan ($21.3 billion), according to a statement on the Ministry of Finance’s website yesterday. The government has vowed to increase its focus on growth after trade and domestic demand were below forecasts in April.
A state gauge of Chinese manufacturing due June 1 may show a drop to 52 in May from 53.3, according to economists surveyed by Bloomberg News. Readings above 50 signal expansion.
Protests against Xstrata Plc’s Tintaya copper mine that resulted in two deaths prompted Peru to declare a state of emergency for 30 days in the southern Andes region. The mine produced 74,300 tons of copper in concentrate last year, according to Xstrata’s website.
Copper inventories tracked by the LME rose 1.2 percent to 225,800 tons, the highest level since May 8. Deliveries into Singapore and Gwangyang in South Korea totaled 3,775 tons. Bookings to remove the metal from LME warehouses dropped for a 12th session to 22,925 tons, remaining at the lowest level since December.
Zinc, nickel, aluminum, lead and tin rose in London.
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