Copper Rises on Stockpile Decline, U.S. Manufacturing Data

By Li Xiaowei

Feb. 3 (Bloomberg) -- Copper climbed in London after global stockpiles fell for the first time in seven weeks and as manufacturing in the U.S., the world’s second-largest user after China, shrank less than economists forecast.

London Metal Exchange-monitored inventory fell 325 metric tons to 491,200 tons yesterday, the first decline since Dec. 11. The U.S. Institute for Supply Management’s factory index rose to 35.6 in January from 32.9 in the prior month, as a decline in new orders moderated. Readings less than 50 signal a contraction.

“The unexpected inventory decline and the factory index rebound supported copper,” Chen Yonglin, an analyst with Citic Futures Co., said from Shanghai today.

Copper for three-month delivery rose 1.7 percent to $3,230 a ton on the London Metal Exchange at 10:42 a.m. in Shanghai.

April-delivery copper on the Shanghai Futures Exchange rose 2.9 percent to 25,960 yuan ($3,793) at the same time.

Among other LME-traded metals, aluminum fell 0.5 percent to $1,383 a ton and zinc added 2.8 percent to $1,145.

To contact the reporter for this story: Li Xiaowei in Shanghai at xli12@bloomberg.net