Copper Rises as China Factory Output Data Shows Growth

03:00 PM @ Monday - 23 June, 2014
Copper advanced for a seventh day as a private gauge of Chinese factory output beat economist estimates, boosting demand prospects in the biggest user as stockpiles shrink.

The contract for delivery in three months on the London Metal Exchange climbed as much as 1 percent to $6,890 a metric ton, the highest price since June 3, and was at $6,880 at 3:22 p.m. Tokyo time. It is copper’s longest winning streak since Dec. 16.

The preliminary June reading of 50.8 for the Chinese Purchasing Managers’ index released today by HSBC Holdings Plc and Markit Economics compares with May’s final figure of 49.4 and the 49.7 median estimate in a Bloomberg survey. Readings above 50 indicate expansion. LME-tracked stockpiles have plunged 56 percent this year to 159,425 tons, the least since August 2008, according to the bourse data on June 20.

“The data show China’s demand for industrial metals will increase more strongly than what we expected,” said Chae Un Soo, a metals trader at Korea Exchange Bank Futures Co. in Seoul. “The data comes as a surprise exceeding the 50 level for the first time this year.”

An explosion at Gaisky GOK’s copper mine in Russia that Interfax said killed four people also added to concern about copper supplies, said Chae.

In New York, futures for delivery in September added 0.8 percent to $3.1375 a pound. The metal for delivery in August climbed 1.6 percent to 49,520 yuan ($7,950) a ton on the Shanghai Futures Exchange.

Copper inventories monitored by the Shanghai bourse dropped to 75,529 tons last week, the lowest level since December 2011.

On the LME, aluminum, zinc, nickel, tin and lead also rose.
Nguồn:
LinkedInPinterest

OTHERS

More News