Dec. 28 (Bloomberg) -- Copper futures rose to a record in New York for a second straight day on speculation that supply will remain tight as demand in China and India continues to grow.
Stockpiles monitored by the Shanghai Futures Exchange fell 5.8 percent last week, the biggest drop in almost three months.
Refined-copper imports by China surged 37 percent in November from a month earlier. Copper use will outpace supply by 825,000 metric tons next year, more than twice the inventories monitored by the London Metal Exchange, Barclays Capital said.
"Fundamentals are very bullish,” said Michael K. Smith, the president of T&K Futures & Options in Port St. Lucie, Florida. "There is optimism out there. China and India are growing. The demand picture will remain robust.”
Copper futures for delivery in March rose 4.8 cents, or 1.1 percent, to close at $4.328 a pound at 1:13 p.m. on the Comex in New York. Earlier, the metal reached $4.335, the highest ever.
Copper has surged 50 percent since July 1, partly on demand from emerging markets including China, the world’s largest metals user.
As of Sept. 30, global consumption exceeded output by 436,000 tons this year, the International Copper Study Group said last week.
That compares with a deficit of 56,000 tons in the same period last year, the group said.
The world market is in "a significant deficit owing to stronger-than-anticipated demand growth,” the Lisbon-based ICSG said.
The London Metal Exchange is closed for a second day for public holidays.