Copper’s winning streak continues
Copper stands tall among major industrial metals on Tuesday, climbing for a seventh day.
|||Johannesburg - Copper stood alone among major industrial metals, climbing for a seventh day, the longest run of gains in almost 18 months, after an unexpected pickup in a Chinese factory gauge. Other metals fell back after reaching highs in recent days.
Tin touched the highest in more than two years before giving up the advance.
China’s purchasing-managers index of activity at factories rose to 51.2 in October, the highest since July 2014, the National Bureau of Statistics said on Tuesday, underscoring government economic stimulus that’s pushed up commodity prices this year.
“The metals market is extremely geared towards China’s economic health and the PMI numbers that came in will lend some support to the complex, copper in particular,” Harry Tchilinguirian, head of commodities strategy at BNP Paribas SA in London, said by phone. “A lot of these metals are still categorised by oversupply so this will come as welcome relief.”
Copper for three month delivery gained 0.3 percent to $4,865.50 a metric ton by 10.15am on the London Metal Exchange. Tin rose as much as 0.5 percent to $20 800 a ton, the highest since September 2014, before trading down 0.3 percent on the day.
Other metals slid after recent gains. Zinc’s 52-percent jump this year makes it the LME’s top performer, as dwindling mine supply and resurgent demand fuel an emerging shortage.
Trading activity on zinc in Shanghai rose, with volumes for the day reaching the strongest since June 2. Zinc traded down 0.5 percent in London trading.
* With assistance from Martin Ritchie
BLOOMBERG