By Glenys Sim Jan. 4 (Bloomberg) -- Copper climbed for a sixth day to the highest level in 16 months, adding to the biggest annual gain in more than two decades in 2009, on speculation supplies may not keep pace with demand in a global economic recovery. Manufacturing in China, the world’s largest metals user, expanded at the fastest pace in 20 months in December to a seasonally adjusted 56.6, the Federation of Logistics and Purchasing said Jan. 1. This compares with 55.2 in November and the median 55.4 estimate in a Bloomberg News survey. “The increase in base metals prices largely reflected bullish sentiment linked to anticipation of international economic recovery,” David Moore, commodity strategist at Commonwealth Bank of Australia, said in an e-mailed note today. “It was also clear that China’s economy retained considerable growth momentum, adding to base metal consumption.” Copper for delivery in three months on the London Metal Exchange gained as much as 1.1 percent to $7,454 a metric ton, the highest price since Sept. 1, 2008. It traded at $7,440 a ton at 9:38 a.m. in Singapore. The metal more than doubled last year as governments worldwide ramped up spending to lift their economies out of recession, and as the dollar slid 4.2 percent against a basket of six currencies, including the euro and yen. March-delivery copper on the Comex division of the New York Mercantile Exchange rose as much as 1.4 percent to $3.3920 a pound, the highest since Aug. 29, 2008. April-delivery copper on the Shanghai Futures Exchange added as much as 1 percent to 60,630 yuan ($8,879) a ton, the highest for a most-active contract since Aug. 22, 2008, before trading at 60,480 yuan. Codelco Strike Copper also advanced ahead of an expected strike by workers at Codelco’s Chuquicamata copper mine in Chile today after last- minute contract talks broke down Dec. 31, according to union official Miguel Lopez. Concerns about a disruption in supplies from the world’s largest copper producer helped offset growing London Metal Exchange stockpiles, which stood at an eight-month high of 502,325 tons Dec. 31. “There are expectations that the copper market balance will tighten in 2010,” said Moore. Among other LME-traded metals, aluminum rose 0.9 percent to $2,250 a ton, zinc gained 1.6 percent to $2,600 a ton, and lead added 0.7 percent to $2,450 a ton. Nickel was up 1.5 percent at $18,800 a ton, while tin hadn’t traded by 9:50 a.m. in Singapore. To contact the reporter for this story: Glenys Sim in Singapore at gsim4@bloomberg.net

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