New York. – Copper rose in New York after manufacturing expanded at a faster-than-projected rate in China, the biggest consumer of industrial metals, bolstering the outlook for demand.
A Chinese factory gauge from HSBC Holdings Plc and Markit Economics showed a preliminary October reading of 50,4, exceeding the median estimate of 50,2 in a Bloomberg News survey.
The nation accounts for about 45 percent of copper demand, according to Standard Chartered Plc. Copper also climbed after a similar euro-area gauge unexpectedly increased.
“While the manufacturing sector likely stabilised in October, the economy continues to show signs of insufficient effective demand. This warrants further policy easing, and we expect more easing measures on both the monetary as well as fiscal fronts in the months ahead,” Qu Hongbin and Julia Wang, economists at HSBC Plc, said of China in a note yesterday.
Copper for December delivery added 0,4 percent to $3 029 a pound by 7:32 a.m. on the Comex in New York. The contract for delivery in three months rose 0,6 percent to $6 671 a metric ton on the London Metal Exchange.
“There have been light pockets of consumer buying, some spec short-covering as we approached $6 500,” James Marks, head of global metals at Xconnect Trading Ltd in London, said by e-mail.
Trading interest is low because many market participants are in London for LME Week, when supply contracts are discussed, according to Xconnect.
A euro-area manufacturing measure unexpectedly rose to a preliminary 50,7 in October, Markit said. Economists expected a drop to 49,9. Copper stockpiles monitored by the LME fell for a fourth day to 157 500 tonnes, daily data showed. Orders to remove the metal from warehouses rose 7,7 percent to a one-month high of 28 025 tons amid requests for 1 125 tonnes in Trieste, Italy, and 875 tonnes in Antwerp, Belgium. – Bloomberg.