Copper Rises to Record in London as China Growth Spurs Metal Use

Nov. 11 （Bloomberg） -- Copper rose to a 30-month high in New York and touched a record in London as reports showed higher factory output and stronger inflation in China, the world’s biggest consumer of the metal.

Industrial production advanced 13.1 percent in October from a year earlier, and retail sales gained 18.6 percent, China’s government said. Inflation accelerated to the fastest pace in two years, stoking demand for commodities as a hedge against rising prices. China also reported a drop in its copper output.

The Chinese economic data is “suggestive of continued strong growth in metals demand,” said Gayle Berry, an analyst at Barclays Capital in London.

Copper futures for December delivery added 5.35 cents, or 1.3 percent, to close at $4.0225 a pound at 1:24 p.m. on the Comex in New York. Earlier, prices touched $4.0835, the highest level since May 5, 2008, when the most-active contract reached a record $4.2605.

“Demand from China, India and emerging Asian countries is going to drive prices higher,” said Lannie Cohen, the president of Capitol Commodity Services Inc. in Indianapolis. Copper will reach its old high by the end of the year and climb to $5.08 in 2011, he said.