Copper rose in
London, narrowing this week’s drop, on speculation today’s U.S. jobs report will boost the demand outlook as falling stockpiles cast doubt on analyst forecasts of a 2014 surplus.
U.S. companies probably boosted payrolls in August by more than 200,000 for a seventh consecutive month, according to a Bloomberg survey. Copper stockpiles in warehouses monitored by the London Metal Exchange dropped 58 percent this year even as the International Copper Study Group forecast an annual surplus.
“The mood is mildly upbeat,” said Stephen Briggs, an analyst at BNP Paribas SA in London. “The main thing about copper is we’ve got this familiar story of new mines, and it’s not really showing up in the numbers. My view is the surplus is quite small.”
Copper for delivery in three months advanced 0.3 percent to $6,953 a metric ton by 10:19 a.m. on the LME. Prices slipped 0.4 percent this week and 5.5 percent for the year. Futures for delivery in December rose 0.2 percent to $3.1575 a pound ($6,961 a ton) on the Comex in
New York.
Stockpiles were unchanged today at 154,700 tons, the LME said in its warehouse report. Inventories monitored by the Shanghai Futures Exchange dropped for a fifth straight week, according to bourse data today.
“The surplus is quite small, but I think it will become more evident in coming months,” Briggs said. “Price action this year suggests the market shares my view.”
The jobs report is due at 8:30 a.m. in
Washington.
Copper rose yesterday as the
European Central Bank announced stimulus measures. “Copper still looks weak from a technical perspective, and I don’t think this will be enough to turn the tide of bearish sentiment,” said
Daniel Smith, head of Dan Smith Commodities Research Ltd. in London.
Copper analysts and traders are the most bearish in a month on prices for next week on speculation demand is stalling, according to the Bloomberg weekly sentiment survey.
Aluminum and lead declined in London as nickel advanced. Zinc and tin were little changed.
