SINGAPORE, Oct. 23 -- Copper advanced for a second day in Shanghai and was set for its best week in almost two months after China's economy grew at the fastest pace in a year, driven by its $586 billion stimulus and record lending.
The world's third-largest economy expanded 8.9 percent in the third quarter from a year earlier, data released yesterday showed. The metal used in construction and automobiles is also higher this week on speculation supplies may be disrupted.
"The latest batch of Chinese economic data provides further evidence, if any was needed, that China's economy remains on a strong growth path," David Moore, commodity strategist at Commonwealth Bank of Australia, said in an e-mail.
January-delivery copper on the Shanghai Futures Exchange rose as much as 0.9 percent to 50,930 yuan ($7,460) a metric ton, and traded at 50,860 yuan at 9:25 a.m. in Shanghai, up 4.3 percent this week. China is the world's largest copper consumer.
Copper for delivery in three months on the London Metal Exchange gained as much as 0.7 percent to $6,635 a ton, before trading at $6,631 a ton, as the dollar resumed its decline after a recovery in corporate earnings revived demand for riskier assets such as equities.
"China is expected to continue to record strong growth in the coming year, with growth in domestic spending remaining a key driver," said Moore.
A strike BHP Billiton Ltd.'s Spence plant in Chile which boosted copper prices on Oct. 21 to a 13-month high of $6,665 a ton, entered its 10th day yesterday. No deal was reached after the world's largest mining company and miners held talks yesterday and negotiations will continue today, according to union leader Andres Ramirez. BHP this week also declared force majeure on some copper-supply contracts after the closure of a shaft at its Olympic Dam mine in Australia.
Among other LME-traded metals, aluminum rose 0.4 percent to $1,973 a ton and nickel gained 0.9 percent to $19,320 a ton. Zinc fell 0.3 percent to $2,243 a ton, lead slid 0.5 percent to $2,392 a ton, and tin hadn't traded.