By Glenys Sim Dec. 24 (Bloomberg) -- Copper in Shanghai jumped to the highest level in more than 15 months, tracking overnight gains in London and New York, on optimism the economic recovery is gathering pace. Zinc surged to the highest since April 2008. Consumer spending and incomes in the U.S., the world’s second-largest copper user after China, climbed in November, indicating the economy may strengthen as the labor market recovers. The dollar was little changed against a basket of six major currencies today, halting a 4 percent rally this month that cooled investor demand for some commodities. “Economic data seems to be improving and this is driving the positive sentiment,” Song Libo, research manager at Capital Futures Co., said from Beijing. “The market still faces downside risk as stockpiles build. However, the anticipation is that these will be absorbed by a recovery in demand next year.” Copper for March-delivery on the Shanghai Futures Exchange rose as much as 1.8 percent to 56,600 yuan ($8,289) a metric ton, the highest price for a most-active contract since Sept. 5, 2008. It traded at 56,580 yuan at 10:30 a.m. Singapore time. March-delivery zinc added as much as 1.8 percent to 19,630 yuan a ton, the highest since April 7, 2008. Copper prices were also buoyed by an impending strike by workers at Codelco’s Norte division in Chile after they rejected an improved wage offer from the world’s largest copper producer. Workers will vote on Dec. 28 or Dec. 29 on whether to strike. LME Prices, Inventories Copper for delivery in three months on the London Metal Exchange gained 0.5 percent to $7,033 a ton, while the metal for March delivery on the Comex division of the New York Mercantile Exchange was little changed at $3.1995 a pound, after climbing the most in five weeks yesterday. London copper prices more than doubled this year as the world economy lifted from its worst recession since World War II. Still, reduced consumption of the metal used in electrical goods, construction and automobiles boosted LME stockpiles by 42 percent this year. Inventories expanded yesterday for a 37th straight day to an eight-month high of 482,775 tons. Among other LME-traded metals, aluminum rose 0.4 percent to $2,264 a ton, and lead climbed 0.6 percent to $2,344 a ton. Zinc dropped 1.3 percent to $2,505 a ton, nickel fell 1 percent to $18,250 a ton, while tin hadn’t traded. To contact the reporter for this story: Glenys Sim in Singapore at gsim4@bloomberg.net

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