London Copper Climbs For Second Day
London copper climbed for a second session in a row today, pushing further away from Monday’s two-month low, yet the industrial metal is heading for its weakest month since May as demand growth from top consumer China slows, Reuters reported on 31 October 2012.
**Over 1% Jump**
Recovering from a two-month low on Monday, three-month copper on the London Metal Exchange (LME) bounced 1.2 per cent to $7,814.50 a tonne, extending modest gains from the previous day. On Tuesday, LME copper advanced as much as 1 per cent after reports suggesting a revival in Asian economies bolstered prospects for a demand boost.
Taiwan reported resumed economic growth during the last quarter, while South Korean production climbed for the first time in four months and Singapore’s jobless rate fell. The metals market is now watching for another sign of revival on the continent. The official gauge due for release on Thursday, is expected to show manufacturing in China, the biggest copper consumer, expand for the first time in three months.
Copper was also boosted by a stronger euro against the dollar, which makes metals priced in the US currency cheaper for European traders. On Tuesday, the single currency got support from a well-received Italian debt auction and improved EU economic data, including higher retail sales in Germany.
!m[Copper on the LME Jumps over 1%, But Remains on Track for Monthly Loss](/uploads/story/690/thumbs/pic1_inline.png)Today, copper, as well as other industrial metals, has also been bolstered by resumed trading activity on Wall Street as the financial markets reopened after they were forced to shut down for two days due to Hurricane Sandy’s impact on the US East Coast. On the Commodity Exchange (Comex) in New York, copper for December delivery advanced 1.2 per cent to $3.547 a pound. According to traders and analysts, however, the current rebound of copper, both in London and New York, will not gather much momentum ahead of the US presidential election next Tuesday and the Chinese leadership transition during a meeting that starts two days later.
**Copper Set for Weakest Month Since May**
On Monday, copper hit a 7-week low as the euro fell and concerns about global growth, heightened by disappointing corporate earnings, dented risk appetite. Monday’s decline, however, has just contributed to generally weak monthly performance amid worries that China’s appetite for copper imports is falling. Currently, copper is on track for a loss of 5 per cent in October – the industrial metal’s steepest drop since falling nearly 12 per cent in May.
Amongst other metals, today, aluminium rose 0.3 per cent to $1,915 a tonne, zinc was 0.5 per cent higher to $1,864, lead gained 1.1 per cent to $2,063.50 and nickel added 1.4 per cent to $16,275. LME three-month tin climbed 0.9 per cent to $19,970 a tonne, the third day the metal has been turned back at resistance of $20,000. London-based broker and market maker Triland Metals said in a note there seemed to be a flurry in the Asian market as merchants checked the availability of material, potentially a sign of reduced producer activity below the $20,000 per tonne mark. Of LME tin inventories, some 43 per cent of the total stocks of 11,860 tonnes are cancelled and therefore not available to the market.
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