Copper rose the most in almost seven months in New York amid reduced concern that the euro-region debt crisis will crimp demand after officials agreed to ease rules for emergency loans to Spanish banks.
Leaders of the 17 euro nations meeting in Brussels dropped a requirement that taxpayers get preferred creditor status on crisis loans to Spain’s blighted banks. The euro gained the most since October against the dollar, making metals priced in greenbacks cheaper for users of the single currency.
“It’s a reaction to the news about the European Union situation,” Nikos Kavalis, an analyst at Royal Bank of Scotland Group Plc in London, said by phone today. “For this to become a trend, you need a series of news to come out to suggest they are really taking the necessary steps.”
Copper for September delivery climbed 4 percent to $3.465 a pound by 8:59 a.m. on the Comex in New York after gaining as much as 4.5 percent, the most since Nov. 30. Prices are up 3 percent in June and down 9.4 percent for the current quarter. The London Metal Exchange’s three-month contract rose 3.7 percent to $7,659 a metric ton.
A weaker dollar also makes commodities more appealing as an alternative investment.
Copper inventories monitored by the LME rose for a seventh session to 257,150 tons, daily exchange figures showed. That capped an 11 percent increase for June, the first monthly expansion since September. Stockpiles monitored by the Shanghai Futures Exchange rose to 139,442 tons this week, according to figures posted on the bourse’s website.
Orders to draw copper from LME warehouses declined 1.8 percent to 27,800 tons. Still, they climbed 29 percent this month after plunging 77 percent in May.
Aluminum for three-month delivery on the LME rose 1.9 percent to $1,880 a ton. Alcoa Inc. (AA:US), the largest U.S. producer of the lightweight metal, will cut the workforce at its Point Henry smelter in Australia by 10 percent to lower costs, committing to keep it operating for at least two years. The smelter produced about 190,000 tons of aluminum a year.
Zinc, lead, nickel and tin gained in London.
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