Copper Rebounds as Manufacturing Output in U.S. Tops Estimates

Aug 15, 2014 1:45 pm ET

Aug. 15 (Bloomberg) -- Copper rose in London for the first time in six sessions as factory production topped analyst estimates in the U.S., the world’s second-largest metal consumer.

Output at manufacturers increased in July at the fastest pace in five months and was more than estimated, figures from the Federal Reserve showed today. Global copper inventories monitored by exchanges in London, New York and Shanghai fell for the second straight week.

“The strong factory number might promote some buying,” Frank Lesh, a trader at FuturePath Trading LLC in Chicago, said in a telephone interview. “You can’t rule out a short-covering rally.”

Copper for delivery in three months rose 0.7 percent to settle at $6,870 a metric ton ($3.12 a pound) at 5:50 p.m. on the London Metal Exchange. This week, the price fell 1.8 percent, the third straight drop, partly amid signs of stalled economies in Germany, the third-biggest user, and France.

Aluminum, lead and tin advanced today in London, while zinc and nickel declined.

Copper futures for December delivery rose 0.4 percent to $3.1245 a pound on the Comex in New York. The price has dropped 8 percent this year. China is the top consumer.

--With assistance from Maria Kolesnikova in London.