Copper in Shanghai Gains First Day in Three on Recovery Signs

SHANGHAI, Aug. 10 -- Copper in Shanghai climbed for the first time in three days, matching gains in London amid optimism that the global recession may be easing.

    Futures in London jumped 7.5 percent last week, touching the highest in 10 months, as U.S. employers eliminated fewer jobs last month than economists forecast, adding to signs the slump in the world's largest economy is abating. The metal in Shanghai added 3.2 percent in the same period.

    "Investors are betting a strong U.S. recovery in the second half may push copper prices even higher," Xiao Jing, an analyst at Beijing Capital Futures Co., said by phone today. "They've stepped up buying Shanghai contracts, hardly heeding bearish signs."

    Copper for November delivery on the Shanghai Futures Exchange rose as much as 3.9 percent to 48,440 yuan ($7,087) a metric ton before last trading at 48,240 yuan. Three-month delivery copper on the London Metal Exchange slid 0.4 percent to $6,125 a ton at 11:15 a.m. in Shanghai.

    London exchange-monitored stockpiles expanded by 7,750 tons to 292,125 tons on Aug. 7, the highest level since June. Inventories of copper in Shanghai climbed for a second week last week.

    Among other LME-traded metals, aluminum fell 0.5 percent to $2,010 a ton and zinc dropped 1.3 percent to $1,875 a ton. Lead was little changed at $1,899, nickel added 0.6 percent to $19,750 and tin hadn’t traded as of 9:58 a.m. in Shanghai.

    (Source: Bloomberg)