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Copper Rises to 26-Month High in London as China's Manufacturing Increases

U.S. Copper Futures at 2-yr top on dlr, China Data

Sep 30 (Bloomberg) -- Copper prices in London rose to the highest level in almost 26 months as metal inventories dwindled and a report showed manufacturing increased in China, the world&rsquo;s largest user.
Stockpiles monitored by the London Metal Exchange fell to the lowest level since Nov. 4 and are down 25 percent this year. A China purchasing managers&rsquo; index released today by HSBC Holdings Plc and Markit Economics reached a five-month high in August.
Copper prices have gained 35 percent in the past year.
&quot;Copper is benefitting from the pick-up in Chinese production and continued drawdown in stocks,&rdquo; said Frank McGhee, the head dealer at Integrated Brokerage Services in Chicago.
Copper for delivery in three months rose $113, or 1.4 percent, to close at $8,064 a metric ton ($3.66 a pound) at 6:15 p.m. in London. Earlier, the price reached $8,075, the highest level since Aug. 1, 2008.
On the Comex in New York, copper futures for December delivery rose 2.45 cents, or 0.7 percent, to $3.6615 a pound. Earlier, the metal reached $3.6735, the highest price for a most-active contract since April 12.
Inventories fell 175 tons today to 375,100 tons. Stockpiles have slumped for 31 straight weeks and are poised for the first annual decline since 2004.
Another gauge of Chinese manufacturing was forecast to increase by economists.
&quot;Just as Western authorities are going for more quantitative easing and competitive devaluation, we might just be surprised by the strength of global growth for the next quarter or so,&rdquo; said Nic Brown, an analyst at Natixis Commodity Markets Ltd. in London.
Aluminum, lead, tin, nickel and zinc also rose in London.&nbsp; 
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