Copper rose for the first time in three sessions on speculation that China will take more steps to spur its economy, bolstering the outlook for metals demand.
Chinese officials will intensify their response to a slowdown in the country’s economy, Premier Wen Jiabao said. He spoke as government figures showed inflation reached a 29-month low. Goldman Sachs Group Inc. said copper usage probably will keep climbing in the Asian nation, the world’s top metals consumer.
“Any indication that China may ease is encouraging,” William O’Neill, a partner at Logic Advisors in Upper Saddle River, New Jersey, said in a telephone interview. “Chinese inflation numbers were a bit on the low side, and that’s a plus for the market because it allows for accommodation” in monetary policy, he said.
Copper futures for September delivery gained 0.6 percent to settle at $3.4315 a pound at 1:17 p.m. on the Comex in New York. On July 6, the metal slumped 2.4 percent, the most in two weeks, after a report showed the U.S. added fewer jobs last month than economists had forecast.
A 50 percent jump in June property sales in eastern provinces of China compared with a year earlier will support metals demand, according to Goldman Sachs. The Copper Development Association says construction accounts for about 40 percent of demand.
Orders to remove supplies from warehouses monitored by the London Metal Exchange jumped 27 percent to 44,400 metric tons, the highest since May 14, on gains in South Korea and New Orleans, daily exchange figures showed. Stockpiles declined for the fifth time in six sessions to 253,350 tons.
On the LME, copper for delivery in three months climbed 0.4 percent to $7,560 a ton ($3.43 a pound).
Nickel, aluminum, lead, zinc and tin also gained in London.
To contact the reporters on this story: Joe Richter in New York at email@example.com; Maria Kolesnikova in London at firstname.lastname@example.org
To contact the editor responsible for this story: Steve Stroth at email@example.com