Aug. 30 (Bloomberg) -- Copper was poised for the biggest monthly advance since September as economic reports from Japan to the U.S. signaled the global recovery is strengthening and prospects of an imminent strike against Syria eased.
Metal for delivery in three months on the London Metal Exchange climbed as much as 0.7 percent to $7,200.75 a metric ton and traded at $7,183 at 3:40 p.m. in Tokyo. Prices, which advanced for the first time in four days, have risen 4.4 percent this month, gaining for the second straight month.
Japan’s consumer prices rose in July at the fastest pace since 2008, jobless rate fell and industrial production increased. The U.S. economy grew more than forecast last quarter. Concern conflict with Syria will disrupt Middle East oil supplies eased as U.K. Prime Minister David Cameron failed to gain parliamentary backing for military action.
“With the positive economic data from Japan and the U.S., copper appeared more attractive after recent price drops,” said Tetsu Emori, the chief fund manager at Astmax Asset Management Inc. in Tokyo. “Sentiment also improved after the U.K parliament voted against military strikes on Syria.”
Futures for delivery in December on the Shanghai Futures Exchange fell 0.8 percent to close at 51,960 yuan ($8,490) a ton. Metal for delivery in December was 0.3 percent higher at $3.2685 a pound on the Comex in New York.
On the LME, tin, aluminum, zinc, nickel and lead declined.
Sumitomo Corp., Japan’s fourth-largest trading house, forecast a global aluminum surplus will extend into an eighth year in 2014 as demand growth in China, the biggest consumer, is slowing. Supply will outpace demand by 994,000 tons, expanding from 883,000 tons estimated for this year, said Shingi Yamagiwa, manager of the company’s light metals trading.
--With assistance from Alfred Cang in Shanghai. Editors: Jarrett Banks, Sungwoo Park