December 21 (Bloomberg) -- Copper climbed to a record in London and advanced to a 31-month high in New York on optimism that the economic recovery in the U.S. remains on track, amid supply disruptions at the world’s third-largest copper mine.
Three-month-delivery copper on the London Metal Exchange rose as much as 0.9 percent to $9,285 a metric ton, surpassing the previous peak of $9,267.50 reached on Dec. 14. The contract, which traded at $9,280 at 3:08 p.m. in Singapore, is headed for a second annual gain.
Futures on the Comex in New York climbed as much as 1 percent to $4.2465 a pound, the highest price since May 2008. The metal for March-delivery on the Shanghai Futures Exchange gained as much as 1 percent to 69,350 yuan ($10,414) a ton.
"Against the backdrop of higher inflation next year, we remain positive about the outlook for metals, especially copper, which is expected to be in a deficit next year,” said Li Yongmin, senior analyst at Green Futures Brokerage Co.
Federal Reserve Bank of St. Louis President James Bullard said yesterday provision of stimulus is "reviewable and changeable” depending on economic growth, which may be stronger next year than some economists forecast. The U.S. Commerce Department tomorrow may revise its estimate for third-quarter growth to an annualized 2.8 percent, according to a Bloomberg News survey of economists, from 2.5 percent previously.
In Chile, Anglo American Plc and Xstrata Plc’s Collahuasi Venture declared force majeure after an accident shut down its port, likely worsening an expected shortfall. The International Copper Study Group is expecting a 435,000-ton deficit in the refined metal next year, the first shortage since 2007.
"Sentiment heading towards the end of the year is very positive as investors are very optimistic about the fundamental outlook,” said Jia Zheng, a trader at Soochow Futures Co.