Aug. 22 (Bloomberg) -- Copper led gains in industrial metals after a manufacturing index in China increased in August from an 11-month low, adding to signs the world’s second-biggest economy is stabilizing.
Copper for delivery in three months on the London Metal Exchange rose as much as 1.5 percent to $7,350 a metric ton and traded at $7,333 at 2:35 p.m. in Shanghai. The metal fell 1.1 percent yesterday. Lead, nickel, zinc, tin and aluminum also advanced.
The preliminary reading of 50.1 for a Purchasing Managers’ Index released today by HSBC Holdings Plc and Markit Economics compares with a final figure of 47.7 in July and the 48.2 median estimate in a Bloomberg News survey of economists. A number above 50 indicates an expansion. Copper inventories tracked by the LME declined yesterday for a 26th session.
“It’s decent number,” said Hwang Il Doo, a senior trader at Korea Exchange Bank Futures Co. in Seoul. With a strengthening U.S. economy and Europe’s moderate recovery, copper may test the upper end of a current trading range between $7,250 and $7,400 a ton, he said.
LME copper inventories declined 1 percent to 566,925 tons, daily exchange data showed yesterday. Orders to withdraw the metal from warehouses fell 0.1 percent to 297,350 tons.
Futures for delivery in December on the Shanghai Futures Exchange rose 0.5 percent to 52,730 yuan ($8,613) a ton. Metal for delivery in December was up 1 percent at $3.346 a pound on the Comex in New York.
--With assistance from Alfred Cang in Shanghai. Editor: Brett Miller