Copper futures rose for the first time in three sessions in New York after manufacturing grew faster than forecast in the U.S., the world’s second-largest metals consumer.
The Institute for Supply Management’s factory index increased to 59 in October, matching August as the highest since March 2011, data from the Tempe, Arizona-based group showed today. The median estimate in a Bloomberg survey of economists was 56.1. Readings above 50 indicate expansion. Copper gained the most since June last month amid growth in the U.S. and signs of stabilization in China, the biggest metals user.
“The ISM manufacturing number out of the U.S. helped base metals,” Mike Dragosits, a senior commodity strategist at TD Securities in Toronto, said in a telephone interview. “You have manufacturing out of China that isn’t falling out of bed, and it’s providing a little bit of support.”
Copper futures for December delivery gained 0.3% to $3.0555 a pound by 12:11 p.m. on the Comex in New York. The metal fell 1.9% in the previous two sessions. Prices advanced 1.3% in October.
The metal declined on Oct. 31 after workers called off a one-month strike at Freeport-McMoRan Inc.’s Grasberg copper mine in Indonesia.
On the London Metal Exchange, copper for delivery in three months added 0.2% to $6,710 a metric ton ($3.04 a pound)
Aluminum, lead, tin and zinc rose in London, while nickel fell.
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