Jul. 2 (Bloomberg) –Copper rose, capping the biggest weekly gain since April, on speculation that China will refrain from raising interest rates after manufacturing growth slowed.
Manufacturing in China, the world's largest copper buyer, expanded in June at the slowest pace since February 2009, the China Federation of Logistics and Purchasing said today. The central bank has raised borrowing costs four times since October in a bid to slow growth and cool inflation. Prices have fallen for two straight quarters on demand concern.
"Many market participants probably believe there is less need now to introduce any additional measures to tighten monetary policy any further," said Daniel Briesemann, an analyst at Commerzbank AG in Frankfurt.
Copper futures for September delivery added 2 cents, or 0.5 percent, to close at $4.3025 a pound at 1:14 p.m. on the Comex in New York. The price was up 4.5 percent for the week. The metal gained 2.5 percent in June and dropped 0.6 percent in the second quarter.
On the London Metal Exchange, copper for delivery in three months rose $15, or 0.2 percent, to $9,445 a metric ton ($4.28 a pound).
Aluminum, lead, nickel and tin dropped in London. Zinc was unchanged.