Copper rose in London, rebounding from last week’s drop, after U.S. and Japanese officials indicated central banks in the countries might take more steps to spur economic growth.
The Federal Reserve should keep policy accommodative to support the economy in the U.S., said Charles Evans, president of the Fed Bank of Chicago. Japanese Prime Minister Shinzo Abe said he wants a “bold policy leader” as the next governor of the Bank of Japan. The dollar weakened to a 10-month low against the euro.
“We are higher primarily due to the fact that EUR/USD has broken resistance,” Ole Hansen, head of commodity strategy at Saxo Bank A/S in Copenhagen, said by e-mail. “The news from Japan has indirectly helped this move along.”
Copper for delivery in three months gained 0.7 percent to $8,100 a metric ton by 9:58 a.m. on the London Metal Exchange. Prices slid 0.5 percent last week. Copper for delivery in March rose 0.8 percent to $3.685 a pound on the Comex in New York.
A weaker dollar makes raw materials more attractive as an alternative investment. The U.S. is the world’s second-biggest copper consumer after China and Japan ranks fourth. BOJ policy makers are scheduled to meet next week.
Prices also gained after money managers increased their net-long positions, or wagers on rising copper prices, to 20,165 Comex futures and options contracts as of Jan. 8 from 15,924 a week earlier, according to figures from the U.S. Commodity Futures Trading Commission.
Stockpiles of copper monitored by the LME dropped 0.2 percent to 329,725 tons, daily exchange figures showed. Orders to withdraw the metal from warehouses, or canceled warrants, declined for a fifth session in six to 62,975 tons.
Nickel for delivery in three months on the LME was little changed at $17,586 a ton. Canceled warrants jumped 7.5 percent to 18,576 tons, the highest level since at least October 1997. Stockpiles of the metal used to make stainless steel climbed 2 percent to 147,060 tons, the highest since April 22, 2010.
Aluminum, zinc, lead and tin advanced in London.
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