Copper Rallies in Asia, Paring First Weekly Loss Since October

By Glenys Sim

Dec. 11 (Bloomberg) -- Copper rose for the first time in seven days in Asia, paring its first weekly loss in six, after China’s industrial production grew more-than-estimated and the country’s imports of the metal unexpectedly increased.

Factory output in November climbed 19.2 percent from a year earlier, the statistics bureau said today, more than the 18.2 percent median estimate by economists in a Bloomberg News survey. Imports of copper and products by the world’s largest user jumped 10 percent in November compared with the previous month.

“Imports were widely expected to decline, or at least remain at similar levels to the previous month, so an increase made some investors question if demand is stronger than previously thought,” Li Huazheng, a trader at Shanghai Securities Co.. “At the same time, the economic data today also points to a continued recovery in China.”

Copper for delivery in three months on the London Metal Exchange gained as much as 0.9 percent to $6,871 a metric ton, before trading at $6,865 at 3:44 p.m. Singapore time, rebounding from its longest losing streak in a year. The metal was down 2.5 percent for the week, headed for its largest weekly drop since Oct. 30. March-delivery copper on the Shanghai Futures Exchange ended the day up 0.3 percent at 54,270 yuan ($7,949) a ton.

“Inventory levels will keep the rally in check,” said Li. “The spot market in China is not reflecting strong demand at the moment.”

Copper for immediate delivery in Changjiang, Shanghai’s biggest cash market, has fallen every day since reaching a 14- month high on Dec. 3. Stockpiles of the metal in Shanghai warehouses stood at 104,710 tons last week, more than six times the level at the start of the year, while those at LME warehouses expanded for a 28th day yesterday to 461,625 tons.

Among other LME-traded metals, aluminum was down 0.4 percent at $2,194 a ton, zinc rose 1.1 percent to $2,295 a ton, and lead gained 0.7 percent to $2,290.50 a ton. Nickel added 1.5 percent to $16,525 a ton, while tin was little changed at $15,275 a ton by 3:57 p.m. in Singapore.

To contact the reporter for this story: Glenys Sim in Singapore at gsim4@bloomberg.net