BLBG: Copper Rises for Third Day as U.S. Growth Strengthens; Tin Reaches Record
Copper rose for the third straight day after a report showed that the economy accelerated in the U.S., the world’s second-biggest consumer of the metal.
Gross domestic product grew at an annual rate of 3.2 percent in the fourth quarter following a 2.6 percent increase in the previous quarter, Commerce Department figures show. In 2010, the economy expanded 2.9 percent, the most in five years. Copper also gained as inventories tracked by the Shanghai Futures Exchange dropped for the second consecutive week.
“Optimism in the U.S. economy and global growth is supporting copper,” said Phil Streible, a senior strategist at Lind-Waldock, a broker in Chicago. “The GDP number is giving a small boost to the market.”
Copper futures for March delivery climbed 3.45 cents, or 0.8 percent, to close at $4.373 a pound at 1:31 p.m. on the Comex in New York. The most-active contract rose 1.5 percent this week.
U.S. new-home sales gained the most since 1992 in percentage terms in December and companies ordered more equipment last month for a second month in a row.
Copper inventories declined 0.9 percent to 129,250 metric tons, data from the Shanghai exchange showed. China is the leading consumer.
On the London Metal Exchange copper for delivery in three months advanced $89, or 0.9 percent, to $9,530 a ton ($4.32 a pound).
Tin climbed as much as 3.2 percent to a record $30,040 a ton in London. Prices are up 10 percent in January after last year’s 59 percent jump. PT Timah, the world’s largest supplier, said this month its production may decline for a fourth year in 2011.
Aluminum, lead, nickel and zinc also gained on the LME.
To contact the reporter on this story: Yi Tian in New York at Ytian8@bloomberg.net.
To contact the editor responsible for this story: Patrick McKiernan at pmckiernan@bloomberg.net.
