Copper recovered from a six-week low on speculation that China, the largest user, will introduce more measures to support growth, boosting demand for metals.
Copper for delivery in three months gained as much as 0.7 percent to $8,009 a metric ton on the London Metal Exchange, before trading at $7,953 at 2:04 p.m. Shanghai time. Futures fell to $7,930 yesterday, the lowest level since Sept. 7.
China added 13 railway projects to this year’s investment plan, increasing the number to 22, the Economic Information Daily reported today, without citing anyone. The country approved last month plans to build about 1,250 miles (2,000 kilometers) of roads, 25 new subway and inter-city rail projects as well as port and warehouse developments. Premier Wen Jiabao said the “economic growth has started to stabilize,” the Xinhua News Agency reported on Oct. 17.
“We expect the Chinese economy to gradually improve into the first quarter,” Zhang Sida, an analyst at Dalu Futures Co., said by phone from Shanghai. “The demand is not good, but it should improve as a stabilizing equities market indicates.”
China’s benchmark stock index rose to a six-week high yesterday on speculation regulators will introduce measures to bolster equities before a once-a-decade leadership transition next month. The Shanghai Composite Index (SHCOMP) traded 0.7 percent lower today.
January futures fell 0.5 percent to 57,580 yuan ($9,215) a ton on the Shanghai Futures Exchange. December futures on the Comex in New York were little changed at $3.6175 a pound.
On the LME, tin, zinc and nickel advanced.
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