By Glenys Sim Nov. 12 (Bloomberg) -- Copper gained for a second day in Asia as a weakening U.S. currency drove investors to purchase dollar-denominated commodities as a hedge against quickening consumer prices. The metal used in construction and automobiles also rose as China’s industrial production gained the most in 18 months, adding to optimism the world’s largest copper user will lead the global economic recovery. The country’s imports of the metal and its products fell to a nine-month low last month, inventories in Shanghai grew last week to a five-year high. “The economic data and lower import numbers are good for prices, however the ever-expanding stockpiles are looming over investors’ heads,” said Zhang Dajiang, a senior analyst at Pioneer Metals Group. “We’re really just trading sideways at the moment as the market is faced with mixed signals.” Copper for delivery in three months on the London Metal Exchange rose as much as 0.7 percent to $6,586 a metric ton, and traded at $6,542 at 10:32 a.m. Singapore time. February- delivery copper on the Shanghai Futures Exchange added as much as 0.9 percent to 51,380 yuan ($7,526) a ton. The metal has more than doubled this year as the dollar lost 7.8 percent against a basket of six main trading partners. China’s imports of copper and its products declined 34 percent in October from the previous month to 263,109 tons, while inventories in Shanghai warehouses expanded 1,440 tons last week to a five-year high of 104,275 tons. Among other LME-traded metals, aluminum fell 0.2 percent to $1,962 a ton, and lead slid 0.3 percent to $2,298 a ton. Zinc rose 0.3 percent to $2,190 a ton, while nickel and tin hadn’t traded as of 10:33 a.m. in Singapore. To contact the reporter for this story: Glenys Sim in Singapore at gsim4@bloomberg.net

Source