Copper Advances for a Third Day in London, Shanghai, New York

Dec. 21 （Bloomberg） -- Copper advanced for a third day from London to Shanghai on optimism the economic recovery in the U.S. remains on track, boosting the demand outlook for the metal amid supply disruptions at the world’s third-largest copper mine.

Three-month-delivery copper on the London Metal Exchange rose as much as 0.4 percent to $9,240 a metric ton and traded at $9,231.25 at 9:35 a.m. in Singapore. The contract, which reached a record $9,267.50 a ton on Dec. 14, is set for a second annual gain. Aluminum and lead declined.

“Sentiment heading towards the end of the year is very positive as investors are very optimistic about the fundamental outlook for next year,” said Jia Zheng, a trader at Soochow Futures Co.

Federal Reserve Bank of St. Louis President James Bullard said yesterday provision of stimulus is “reviewable and changeable” depending on economic growth, which may be stronger next year than some economists forecast. The U.S. Commerce Department tomorrow may revise its estimate for third-quarter growth to an annualized 2.8 percent, according to a Bloomberg News survey of economists, up from a previous estimate of 2.5 percent.

The metal for March-delivery on the Shanghai Futures Exchange gained as much as 1 percent to 69,300 yuan （$10,390） a ton, while futures on the Comex in New York climbed as much as 0.3 percent to $4.22 a pound.

In Chile, Anglo American Plc and Xstrata Plc’s Collahuasi venture, the world’s third-largest copper mine, declared force majeure after an accident closed down its port, potentially exacerbating an expected shortfall next year. The International Copper Study Group is expecting a 435,000-ton deficit in the refined metal next year, the first shortage since 2007.

Aluminum in London fell 0.5 percent to $2,366 a ton, lead dropped 0.2 percent to $2,435 a ton, and tin decreased 1.1 percent to $25,905 a ton. Zinc gained 0.5 percent to $2,299.75 a ton, and nickel gained 0.4 percent to $24,650 a ton.