Copper gains on Chinese demand

Copper prices rose in Asia on speculation that demand in China will offset weaker consumption in the US, as traders and processors in the world's largest user of the metal bought the commodity after a decline in prices.

January-delivery copper on the Shanghai Futures Exchange rose as much as 0.5 per cent, or 310 yuan, to 65,510 yuan ($8,769) a tonne, and stood at 65,230 yuan a tonne at the 11:30 am local time break.

The metal for immediate delivery in Changjiang, Shanghai's biggest cash market, was little changed at 65,000-65,100 yuan a tonne today.

London Metal Exchange copper for delivery in three months advanced 0.3 per cent to $7,785 a tonne at 11:37 am Shanghai time, reversing yesterday's 1.1 per cent loss.

Shanghai aluminum for January delivery ended the morning little changed at 18,260 yuan a tonne, and LME aluminum was down 0.4 per cent at $2,511 a tonne.

"The aluminum price has been falling lately because there is an oversupply in the domestic market as it is not profitable to export aluminum,'' said Xinguolian's Li.

Output in China, the world's largest producer of the metal, rose to a record 1.22 million tonnes in September, up 17.3 per cent in the month and 42 per cent from a year earlier, Kemp said in a report yesterday.