Copper Climbs on Inventory Drop, Below-Target China CPI By Jae Hur Aug 11, 2014 5:22 AM GMT+030 Copper rose as stockpiles fell to a six-year low and on speculation demand may rise in China after below-target inflation signaled room for policy easing in the world’s largest user. The contract for delivery in three months on the London Metal Exchange added as much as 0.5 percent to $7,031.50 a metric ton and was at $7,025.25 at 10:21 a.m. in Tokyo. Prices lost 1.1 percent last week, the second weekly drop. Stockpiles tracked by the LME fell 61 percent this year to 142,275 tons, the lowest since July 2008, while inventories monitored by the Shanghai Futures Exchange shrank 6.9 percent to 100,946 tons last week, according data from the bourses. China’s consumer price index rose 2.3 percent in July from a year earlier, the same pace as in June and below the government’s 3.5 percent target, and factory-gate deflation persisted, official data showed Aug. 9. “Lower stockpiles and also the fact that Chinese inflation levels remain below government target levels are key positives for copper,” said Gavin Wendt, founder and senior resource analyst at Sydney-based Mine Life Pty. “It allows the government further room to move in terms of stimulus without having a significant inflationary impact.” In New York, futures for September rose 0.7 percent to $3.1945 a pound. Copper for delivery in October advanced 0.8 percent to 50,100 yuan ($8,143) a ton in Shanghai. On the LME, nickel also climbed, while zinc, lead and aluminum were little changed. Tin hadn’t traded.
Posted on: Mon, 11 Aug 2014 06:12:46 +0000
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