It has gained 48% this year.
Copper rose in London, adding to its longest monthly winning streak in three years, as falling inventories of the metal and increased industrial production in Asia suggest demand is strengthening.
Stockpiles in warehouses monitored by the London Metal Exchange (LME) shrank for the 15th day, the longest slide since February 2008. Inventories held in Singapore and South Korea were the lowest since 2005, according to data released by the exchange on Friday. China is the world’s biggest consumer of copper.
“Chinese buying has been particularly strong this first quarter,” Leon Westgate, an analyst at Standard Bank Group in London said. Economic data is also better than expected, he said.
Copper for delivery in three months rose $105, or 2.4 per cent, to $4,536 a tonne by 10.25 am in London. The contract rose 10 per cent in April for a fourth straight monthly gain, the longest winning streak since January 2006.
The Shanghai market is closed today for Labour Day and the LME will be closed on May 4. “The moves higher have been exacerbated this morning by very thin volumes, as Asian markets are closed,” Westgate said.
LME-monitored inventories fell 1.7 per cent to 398,700 tonnes, the lowest since January 19. Japan’s industrial output rose for the first time in six months, the Trade Ministry said on Thursday. South Korea’s factory production also unexpectedly increased for a third month in March, the statistics office said.
US manufacturing data on Friday may show industry contracted in April at the slowest pace in six months, according to the median forecast of 66 economists surveyed by Bloomberg.
‘Slow process’
“We are seeing more confidence coming back into the market, but it is a very slow process,” Mike Frawley, global head of metals at Newedge Group said from New York late Thursday. Prices will be little changed for the remainder of the year, he said. Copper has gained 48 per cent so far.
Among other metals for delivery in three months, aluminum gained $35.75, or 2.4 per cent, to $1,529.75 a tonne. Stockpiles in LME-monitored warehouses rose 0.2 per cent to a record 3.79 million tonnes. Aluminum has fallen 0.8 per cent this year, after retreating 36 per cent in 2008. Zinc rose 3.2 per cent to $1,470 a tonne and lead gained 1.9 per cent to $1,355. Tin rose 1.6 per cent to $12,550 and nickel gained 1.7 per cent.
