Copper rose for a second day in London as manufacturing strengthened in China, the world’s biggest consumer of the metal, and Europe. A purchasing managers’ index from the China Federation of Logistics & Purchasing gained more than economists estimated. Manufacturing in the euro area expanded at the fastest pace in four months in November, Markit Economics said. Copper also climbed as immediate-delivery metal’s premium to the three-month contract reached the highest level since October 2008. “The outlook for business activity in China still remains very positive, which is clearly going to be good for commodities and should allow prices to remain at high levels,” Charles Cooper, an analyst at Oriel Securities Ltd. in London, said by telephone. Copper for delivery in three months climbed $112, or 1.3 percent, to $8,472 a metric ton at 9:54 a.m. on the London Metal Exchange. Copper for delivery in December added 1 percent to $3.8645 a pound on the Comex in New York. All of the six main metals traded on the LME advanced. The federation’s PMI reading exceeded the 54.8 median forecast of 14 economists surveyed by Bloomberg News. Another Chinese gauge released by HSBC Holdings Plc rose to an eight- month high in November. A U.S. manufacturing index due at 3 p.m. London time probably will be little changed at 56.5 for last month, meaning a 16th straight month of expansion. Higher Premium “We are starting to see the market tuned in for positive signs,” Cooper said. “This is important as we head into the close of the year as portfolio managers chase higher returns for the year, which could be a driver to the market over the next few weeks.” Immediate-delivery LME copper’s premium over three-month metal jumped 29 percent to $74 a ton today. Prices moved on Nov. 8 to a so-called backwardation, when nearby copper trades above longer-dated contracts, potentially indicating concern about near-term supply. An unidentified party held between 50 percent and 79 percent of LME copper stockpiles from Nov. 22 through at least Nov. 26, the latest exchange data show. Inventories shrank to 354,850 tons today, the lowest level since October 2009, after falling for a ninth month in November. Prices gained as the U.S. Dollar Index, a six-currency gauge of the greenback’s strength, slid as much as 0.4 percent. A slumping dollar makes metals priced in the currency cheaper in terms of other monies and spurs demand for raw materials as an alternative investment. Mine Strike In Chile, the workers union at Anglo American Plc and Xstrata Plc’s Collahuasi copper mine is still “far” from reaching an agreement over wages as a strike enters a record 27th day, said a union official. Concern about the stoppage helped to drive copper to a record $8,966 a ton on Nov. 11. Tin for three-month delivery on the LME rose 0.6 percent to $24,650 a ton. Prices reached a record $27,500 on Nov. 9. The metal has jumped 45 percent this year, leading advances on the exchange, after production was disrupted in Indonesia and the Democratic Republic of Congo. Aluminum rose 0.7 percent to $2,291.75 a ton and nickel climbed 1 percent to $23,280 a ton. Lead gained 2.4 percent to $2,284 a ton and zinc added 1.8 percent to $2,150.25 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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