By Chanyaporn Chanjaroen Dec. 21 (Bloomberg) -- Copper rose in London for the first time in three days on speculation Chinese traders are buying the metal to take advantage of differentials between Shanghai and international prices. Nickel also advanced after Russia brought back export tax for metal producers. Shanghai copper prices were at the highest premium above the London Metal Exchange copper since mid-July, according to analysts at Macquarie Group Ltd. led by Jim Lennon in London. Imports of copper into China jumped 67 percent to 3.9 million metric tons in the first 11 months, according to customs data. “There is an arbitrage opportunity as Shanghai prices are at a premium over London,” Robin Bhar, an analyst at Calyon in London, said today by phone. “We look for further strength in copper prices.” Copper for three-month delivery gained $72.25, or 1.1 percent, to $6,917.25 a metric ton at 10:12 a.m. on the London Metal Exchange. Prices rose 0.2 last week. Copper for March delivery rose 0.2 percent to $3.1435 a pound on the New York Mercantile Exchange’s Comex unit. The March contract on the Shanghai Futures Exchange added 0.6 percent to 55,600 yuan ($8,142) a ton. Chinese prices usually include a 17 percent value added tax. Record imports of copper into the world’s most populous country underpinned prices this year, contributing to a more than doubling in London copper prices. Rising Stockpiles Copper stockpiles monitored by the LME added 0.7 percent to 479,450 tons. Including those tallied by exchanges in Shanghai and New York, they have increased 74 percent this year to 670,475 tons, the highest since February 2004, according to data compiled by Bloomberg. Nickel gained as much as 4 percent to $17,790 a ton, the highest intraday price since Nov. 6. The increase came after the Russian government said it will reimpose a 5 percent export tax on the metal. The tax was suspended in January. Russia is home to OAO GMK Norilsk Nickel, the world’s largest producer of the metal. The metal pared gains after the LME daily stockpile report showed an expansion of 1.4 percent to 150,498 tons, the highest since December 1994. Nickel traded at $17,625 a ton. Aluminum rose 0.9 percent to $2,259 a ton. Among other LME metals for three-month delivery, tin gained 0.5 percent at $15,950 a ton and zinc gained 1.8 percent to $2,450 a ton. Lead was 1.3 percent higher at $2,350.75 a ton. To contact the reporter on this story: Chanyaporn Chanjaroen in London at cchanjaroen@bloomberg.net

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