By Anna Stablum Aug. 20 (Bloomberg) -- Copper rallied from a two-week low in London as U.S. leading economic indicators probably rose in July for a fourth straight month, signaling the worst recession since World War II is almost over and demand may rise. The U.S. is the second-largest copper consumer after China and the Conference Board’s gauge of the economic outlook for the next three to six months probably advanced 0.7 percent for a second month, according to the median forecast of 52 economists Bloomberg surveyed. The data is due at 3 p.m. London time. “The data that is coming out is positive but it is positive in so far as the recovery will start to take place, not that it has started to take place,” Steve Hardcastle, an analyst at Sucden Financial Ltd. in London, said by phone. “That is what is causing uncertainty and volatility.” Copper for three-month delivery rose $139, or 2.3 percent, to $6,120 a metric ton by 9:49 a.m. on the London Metal Exchange. Yesterday, the metal fell as much as 4.3 percent to a low of $5,818, the lowest intraday price since Aug. 3. Copper for December delivery rose 0.8 percent to $2.794 a pound on the New York Mercantile Exchange’s Comex. “The supply pipeline is fairly tight and consumer stocks are fairly low so there will be a certain amount of restocking taking place,” he added. The price of copper, used in plumbing and electrical wiring, has almost doubled this year as imports from China more than doubled in the first half. July imports shrank 15 percent from a month earlier, the Beijing-based customs office said. Japanese Aluminum Premiums “There has been a feeling we might have gone a little bit too far, too fast,” Hardcastle said, adding physical demand was dented because of the Northern Hemisphere’s summer holidays. LME-monitored stockpiles in warehouses rose 1,250 tons to 293,250, gaining 4.4 percent this month. Among other LME metals for three-month delivery, aluminum rose 1.1 percent to $1,972 a ton. In Japan, Asia’s second-largest aluminum importer, premiums paid to suppliers may rise to the highest in 14 years in the fourth quarter as reduced shipments from Russia and increased purchases by China boost prices. The fee may climb to more than $100 a ton over aluminum for immediate delivery, said four executives, representing smelters and buyers. The figure is up from $75 a ton this quarter. Shipments from Russia’s United Co. Rusal, the world’s biggest aluminum producer, may be affected by an accident that reduced electricity supply to plants. The company may lose at least 500,000 tons of output, it said on Aug. 17. Nickel was up 2.7 percent at $19,349 a ton. Production was 113,100 tons in June, exceeding demand of 107,700 tons, the International Nickel Study Group said in a report yesterday. Tin rose 4 percent to $14,100 a ton, zinc gained 2.4 percent to $1,852 and lead advanced 2.9 percent to $1,865 a ton. To contact the reporter on this story: Anna Stablum in London at astablum@bloomberg.net

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