Copper Rises a Third Day in Asia on Signs of Sustained Demand

By Li Xiaowei

July 23 (Bloomberg) -- Copper gained for a third day, extending an advance from a one-month low, on signs of sustained demand for the industrial metal.

Copper booked for withdrawal from London Metal Exchange warehouses, known as ``canceled warrants,'' rose for a sixth day yesterday to the highest in four weeks. The premium for immediate delivery copper over the three-month contract was near the highest in almost three years, signaling supply lags demand.

``Signs from London indicate there's sustained demand which may help copper rebound to around $8,300 in the near term,'' Wang Zhouyi, an analyst at China International Futures (Shanghai) Co., said today by phone from Shanghai.


Copper for delivery in three months on the London Metal Exchange added 0.4 percent to $8,160 a metric ton at 12:20 p.m. Shanghai time. The metal, which reached a record $8,940 a ton July 2, dropped to as low as $8,030 last week.

Copper for October Delivery fell 0.3 percent to 62,350 yuan ($9,130) a ton by the 11:30 a.m. break on the Shanghai Futures Exchange. The number of open contracts, or buy and sell positions, have dwindled to around 120,000 from 160,000 in March, indicating less investor demand.

Refined copper imports by China, the world's largest user, declined for a second month in June as higher overseas prices deterred buyers and demand from processors eased during the traditional summer slowdown.

It's not clear yet whether Chinese buyers will be tempted back to the market, Wang said.

Among other LME traded metals, aluminum was little changed at $3,032 and zinc rose 0.8 percent to $1,860. Lead, nickel and tin were untraded in Asia after settling at $2,140, $20,500 and $23,400 a ton yesterday.

To contact the reporter for this story: Li Xiaowei in Shanghai at Xli12@bloomberg.net