June 16 (Bloomberg) -- Copper rose for a second day after an increase in industrial production in China eased concern that demand from the world’s largest metals user will decline.
The contract for delivery in three months climbed as much as 0.6 percent on the London Metal Exchange to $6,697.75 a metric ton and traded at $6,680 at 3:05 p.m. in Hong Kong.
Chinese factory output rose 8.8 percent in May from a year earlier, up from 8.7 percent in April, official data showed on June 13. Copper’s gain today pared this year’s losses to 9.3 percent, still the steepest drop on the LME.
“The rate of increase is still quite robust at 8.8 percent,” said David Lennox, a resource analyst at Fat Prophets, an investment research firm in Sydney. “That is just giving the price that little bit of a kick-up.”
Prices also rose as global stockpiles declined. The combined inventories monitored by the main exchanges in New York, London and Shanghai slipped to 261,420 tons, the lowest since October 2008, bourse data showed June 13.
Copper futures for September rose 0.4 percent in New York to $3.041 a pound, while in Shanghai, metal for delivery in August climbed 0.6 percent to close at 48,030 yuan ($7,727) a ton.
On the LME, nickel advanced, while tin fell. Aluminum and zinc were little changed.