Oct. 22 (Bloomberg) -- Copper advanced to the highest level in more than seven weeks in Shanghai on optimism that economic growth in China, the world’s largest user, will drive demand for industrial metals. China’s economy expanded 8.9 percent in the third quarter from a year earlier, the fastest pace in a year, as stimulus spending and record lending growth helped the nation lead the world out of recession. Copper has more than doubled this year, driven mostly by record purchases by China in the first half. “The GDP number came in within expectations and a lot of the good news was already priced into the market,” said Li Huazheng, a trader at Shanghai Securities Co. “Fundamentally, supply disruption issues are helping offset the inventory build that has been taking place.” January-delivery copper on the Shanghai Futures Exchange rose as much as 1,110 yuan, or 2.2 percent from the previous settlement price, to 51,100 yuan ($7,485) a metric ton, the highest price since Aug. 31. The contract traded at 50,760 yuan at 10:56 a.m. Singapore time. Copper for delivery in three months on the London Metal Exchange traded little changed at $6,575 a ton. The metal climbed to $6,665 yesterday, the highest level since September 2008 as a weaker dollar spurred purchases of commodities. Industrial production in China rose 13.9 percent in September from a year earlier, the fastest pace in more than a year, today’s data showed. Urban fixed-asset investment climbed 33.3 percent in the first nine months from a year earlier, the statistics bureau said. Supply Issues BHP Billiton Ltd., the world’s biggest mining company, declared force majeure on some copper-supply contracts this week after the closure of a shaft at its Olympic Dam mine in Australia, while workers at its Spence mine in northern Chile said they are prepared to go on strike for a “long time”. Still, London Metal Exchange stockpiles jumped 76 percent in the past year as the worst post-war recession has curbed demand for the metal used mainly in construction and automobiles. Inventories of copper in Shanghai have nearly tripled in the past year. Among other LME-traded metals, aluminum was little changed at $1,965 a ton, and tin rose 0.9 percent to $14,575 a ton. Zinc fell 0.7 percent to $2,218 a ton, lead lost 1 percent to $2,425 a ton and nickel slid 1 percent to $19,550 a ton. To contact the reporter for this story: Glenys Sim in Singapore at gsim4@bloomberg.net

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