Sep 2 (Bloomberg)--
Copper rose to the highest price in four months as manufacturing grew at a faster pace in China and the U.S., the world’s largest metal users.
The Chinese purchasing managers’ index rose more than forecast to 51.7 in August from 51.2 in July, a government- backed report showed. The Institute for Supply Management’s gauge of U.S. manufacturing unexpectedly rose to 56.3 from 55.5. Readings greater than 50 signal growth. Copper prices gained 1.8 percent in August.
"China’s PMI, backed up by our ISM numbers, really kicked off a bull leg here,” said Richard Ilczyszyn, a senior market strategist at Lind-Waldock, a broker in Chicago. “Right now, it’s all news driven.”
Copper futures for December delivery rose 10.75 cents, or 3.2 percent, to close at $3.4775 a pound at 1:23 p.m. on the Comex in New York. Earlier, the price reached $3.486, the highest level since April 27.
Copper may reach $3.68 by mid-September, Ilczyszyn said. That would be the highest level since April 12. Copper has gained 14 percent since June 1 as inventories dropped.
On the London Metal Exchange, copper for delivery in three months jumped $166, or 2.2 percent, to $7,606 a metric ton ($3.45 a pound).
Zinc for three-month delivery gained 3.2 percent to $2,133 a pound. Earlier, the metal added as much as 5.1 percent to $2,171 a ton, the highest price since Aug. 9. Aluminum, tin, lead and nickel also climbed.