copper risingCopper Gains on Speculation Chinese, U.S. Demand Will Advance
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By Chanyaporn Chanjaroen and Millie Munshi
Dec. 23 (Bloomberg) -- Copper prices rose the most in a week on speculation that demand will strengthen in China and the U.S., the world’s largest users of the metal.
Sales of existing U.S. homes rose in November to the highest level in almost three years, figures from the National Association of Realtors showed yesterday. China’s imports of the metal rose 15 percent in November compared with October. Copper prices have more than doubled this year.
“Economic data support expectations that demand growth will continue into next year,” Nicholas Snowdon, a commodity analyst at Barclays Capital, said today from London.
Futures for March delivery increased 3.05 cents, or 1 percent, to $3.1685 a pound at 10:25 a.m. on the New York Mercantile Exchange’s Comex unit. A close at that price would be the biggest gain for a most-active contract since Dec. 16.
Workers at Codelco’s Norte division in Chile rejected an improved wage offer yesterday from the world’s largest copper producer and threatened to strike. There was a one-day blockade of the Chuquicamata mine by workers on Dec. 9. Chile is the world’s biggest source of the metal.
“Copper is pushing higher on the threat of a strike,” said Lannie Cohen, the president of Capitol Commodity Services Inc. in Indianapolis. Traders are worried about supplies, he said.
Some investors are “hesitant” to buy copper because rising inventories signal demand may be weak, Cohen said.
Copper stockpiles monitored by the London Metal Exchange increased 0.4 percent to 482,775 metric tons, the highest since April. The inventory has expanded for 37 consecutive sessions, the longest streak since 1999.
Copper for delivery in three months added $79, or 1.1 percent, to $6,960 ($3.16 a pound) a metric ton on the LME.
Among other LME metals for three-month delivery, aluminum, lead, tin, nickel and zinc prices rose.
-- With assistance by Li Xiaowei in Shanghai, Bob Willis in Washington, Matt Craze and James Attwood in Santiago. Editors: Steve Stroth, Ted Bunker.
To contact the reporter on this story: Chanyaporn Chanjaroen in London at cchanjaroen@bloomberg.netMillie Munshi in New York at mmunshi@bloomberg.net.