Copper rose in London, narrowing a second weekly drop, before a report on U.S. industrial production projected to add to signs of an economic revival in the world’s second-biggest consumer of the metal.
Output climbed 0.2 percent in May, the third gain in four, economists said. Small businesses in the U.S. were the most optimistic in a year, mortgage applications rebounded from four weeks of declines and retail sales advanced more than forecast, reports showed this week.
“Today the market focus is likely to shift from commodity-specific data back to economic data,” Marina Stoop, an analyst at Credit Suisse Group AG’s private-banking unit, wrote in a report. “U.S. industrial production is due, and a rebound could provide much-needed support for metals.”
Copper for delivery in three months added 0.6 percent to $7,089 a metric ton by 10:20 a.m. on the London Metal Exchange, cutting the weekly slide to 2 percent. Copper for July delivery rose 0.4 percent to $3.198 a pound on the Comex in New York.
Prices increased on June 12 as Freeport-McMoRan Copper & Gold Inc. declared force majeure on shipments from the world’s second-biggest copper mine, Grasberg in Indonesia, after a deadly accident in May. The shutdown is cutting output by 3 million pounds (1,361 tons) a day, equal to 2.9 percent of average daily global production in 2013.
“The improving U.S. economy indicated demand will increase amid mine-supply concern after Freeport’s force majeure on shipments from Grasberg,” said Hwang Il Doo, a senior trader at Korea Exchange Bank Futures Co. in Seoul. Force majeure is a legal clause freeing companies from contract terms because of circumstances beyond their control.
Copper stockpiles monitored by the LME rose 1.6 percent to 618,075 tons, capping a second weekly expansion, daily exchange figures showed. Orders to remove the metal from warehouses fell 1.1 percent to 218,750 tons.
Nickel for delivery in three months rose as much as 1.6 percent on the LME after touching $14,052 a ton, the lowest since 2009. Tin reached the lowest price since May 7 and aluminum slipped, while zinc and lead gained.
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