Copper Prices Rise, Buoyed by Climb in U.S Leading Indicators

NEW YORK, Sept. 22 -- Copper prices rose after a report showed the index of U.S. leading economic indicators climbed for a fifth month, boosting the outlook for metals demand.

    The index, a gauge of the economic outlook for the next three to six months, rose 0.6 percent in August, the Conference Board, a business-supported group, said today. Copper prices have almost doubled this year on speculation that consumption of raw materials will gain as reviving economic growth boosts demand from home-building and manufacturing industries.

    "There's been a big run-up in copper prices this year, so right now the big question is whether demand will continue to grow," said Gijsbert Groenewegen, a Gold Arrow Capital Management partner in New York.

    Copper for December delivery gained 2.05 cents, or 0.7 percent, to $2.8055 a pound on the New York Mercantile Exchange's Comex division.

    Earlier, the price fell as much as 1.2 percent to $2.7505, the lowest for a most-active contract since Sept. 2. Rising inventories have spurred concern that demand from China, the world's biggest metals user, may decline.

    Copper stockpiles in warehouses monitored by the London Metal Exchange rose 1.3 percent today to 331,825 metric tons, the highest level since May 22. Supplies tallied by the LME have jumped 29 percent from this year's low on July 14.

    In Moscow, the Russian government may resume taxing copper exports, according to Viktor Semyonov, head of the base industries department of the Industry and Trade Ministry. A 10 percent levy was scrapped earlier this year to help local producers. Taxes may also be imposed on exports of nickel and other LME-traded metals, Semyonov said.

    In London, copper for three-month delivery climbed $15, or 0.2 percent, to $6,190 a ton ($2.81 a pound) on the LME.

    Among other LME-traded metals, aluminum and tin fell. Nickel, lead and zinc rose.

    (Source: Bloomberg)