Copper in London advanced as faster- than-expected manufacturing growth in China and increasing U.S. consumer confidence boosted the outlook for the global economy. The metal for three-month delivery was little changed at $8,366.25 a metric ton on the London Metal Exchange at 12:22 p.m. Shanghai time after swinging between a 0.4 percent gain and 0.3 percent loss. Copper for March delivery on the Comex in New York fell 0.2 percent to $3.817 a pound. “The manufacturing number shows the economy is still healthy and that will give the government some confidence to push out more cooling measures,” said Deng Changrong, a strategist at Huaxi Securities Co. in Shenzhen. China’s Purchasing Managers’ Index in November rose to 55.2, the fastest pace in seven months, from 54.7 in October, the China Federation of Logistics & Purchasing said on its website today. The result was more than the 54.8 median forecast of 14 economists surveyed by Bloomberg News, indicating the economy is maintaining momentum amid recent increases in interest rates and required reserve ratios for banks. Another PMI released by HSBC Holdings Plc showed manufacturing in the world’s biggest metals user rose to the highest level in eight months to 55.3 in November, from 54.8 the previous month. In the U.S., consumer confidence rose in November to the highest level in five months, exceeding the median forecast in a Bloomberg News survey, while Institute for Supply Management- Chicago Inc. said its business gauge advanced to the highest level since April. LME Premium The LME copper premium for immediate-delivery climbed to $60 a ton over the benchmark three-month contract yesterday, the highest level since October 2008. An unidentified company held between 50 percent and 79 percent of LME copper stockpiles from Nov. 22 through at least Nov. 26, the latest exchange data show. “It looks like a squeeze to me,” Lu Chenghong, an analyst at Jiger Capital Management Ltd., said by phone from Shanghai, referring to a situation in which a single investor may be able to influence prices by holding a dominant position. “As the month progresses, the situation may change,” Lu said. Copper for March delivery in Shanghai increased 1.2 percent to close at 63,430 yuan ($9,511) a ton at the noon break. The metal traded on Changjiang nonferrous metals physical market was quoted at 62,550 to 62,700 yuan a ton today, or a discount of 150 to 300 yuan to the front-month futures contract on the Shanghai Futures Exchange. China Market ‘Weak’ “The physical market in China isn’t really tight,” Peng said. “In fact, it’s a bit weak as demand in winter traditionally isn’t good.” In Chile, the workers union at Anglo American Plc and Xstrata Plc’s Collahuasi copper mine, the world’s fourth- biggest, had a day of “difficult” negotiations with the company, and was still far from reaching an agreement over wages to end a 26-day a strike, a union official said yesterday. He declined to be named, saying he is not an authorized spokesman. Aluminum in London gained 0.4 percent to $2,283.75 a ton, zinc increased 1.3 percent to $2,140 a ton and lead climbed 0.9 percent to $2,250 a ton. Nickel rose 0.2 percent to $23,100 a ton and tin advanced 0.2 percent to $24,550 a ton. --Helen Sun, with assistance from Irene Shen. Editors: Matthew Oakley, Jake Lloyd-Smith. To contact the Bloomberg News staff on this story: Helen Sun in Shanghai at hsun30@bloomberg.net To contact the editor responsible for this story: James Poole at jpool4@bloomberg.net

Source