Copper rose to a one-week high in London, rebounding from a third straight weekly drop, as equities advanced after European governments agreed to a bailout for Ireland. European officials agreed to offer Ireland an 85 billion- euro ($113 billion) lifeline. The MSCI World Index of shares added as much as 0.6 percent, and futures indicated that U.S. benchmarks will climb when trading begins in New York. Copper also gained as Rio Tinto Group said the metal is among those for which demand will double over the coming 15 to 20 years. “The euro-zone debt crisis may provide a rally due to the agreed bailout,” said Jesper Dannesboe, a strategist at Societe Generale SA in London. “I see scope for a significant rally, as the selloff seems overdone.” Copper for delivery in three months climbed $61, or 0.7 percent, to $8,300 a metric ton at 9:51 a.m. on the London Metal Exchange. Prices reached $8,359.50, the highest level since Nov. 22. Copper for delivery in March added 0.5 percent to $3.7815 a pound on the Comex in New York. All of the six main metals traded on the LME gained, led by zinc. “We probably won’t make new highs on copper until next year, but a relief rally to $8,600-$8,700 seems possible,” Dannesboe said. Prices advanced to a record $8,966 a ton on Nov. 11. ‘Buying Opportunities’ Increasing modernization of developing nations will drive demand, Tom Albanese, Rio’s chief executive officer, said at an investor seminar in Sydney. Rio is the world’s third-largest mining company. “All the signs are that underlying dynamics in commodities markets are still very healthy and that price dips represent buying opportunities,” Barclays Capital analysts Kevin Norrish and Roxana Mohammadian Molina said in a report today. Copper reached a record with the help of concern about a strike at Collahuasi, the world’s fourth-biggest mine, that began Nov. 5. Prices then dropped on concern that demand might weaken as China, the world’s biggest copper consumer, moves to curb inflation and on gains by the dollar. “While the near-term risks are skewed to the downside on dollar strength and China uncertainty, we expect copper to remain firmer as long as industrial action continues at Collahuasi,” Morgan Stanley analyst Hussein Allidina said in a report e-mailed today. Pay Talks The union representing striking workers at the Chilean mine said yesterday it is “hopeful” of reaching a wage agreement when talks resume today. The U.S. Dollar Index, a six-currency gauge of the greenback’s strength, fell as much as 0.4 percent today after gaining for a third week last week. A weaker dollar makes commodities priced in the currency cheaper in terms of other monies and stokes demand for raw materials as an alternative investment. Immediate-delivery LME copper’s premium to the three-month contract rose 10 percent to $53 a ton today. Prices moved on Nov. 8 to a so-called backwardation, when nearby metal trades above longer-dated contracts, potentially indicating concern about near-term supply. Aluminum for three-month delivery on the LME rose 0.7 percent to $2,286 a ton. China sold all the aluminum ingots offered from the state reserve at below-market prices, the National Development and Reform Commission said today on its website. Tin added 0.8 percent to $24,400 a ton. Prices reached a record $27,500 on Nov. 9. The metal has jumped 44 percent this year, leading advances on the exchange, after production was disrupted in Indonesia and the Democratic Republic of the Congo. Nickel climbed 1.2 percent to $22,825 a ton, lead gained 1.1 percent to $2,306 a ton and zinc advanced 1.6 percent to $2,138 a ton. To contact the reporter on this story: Maria Kolesnikova in Moscow at mkolesnikova@bloomberg.net To contact the editor responsible for this story: Claudia Carpenter at ccarpenter@bloomberg.net.

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