Copper Climbs, Pares for First Weekly Drop in Six, as Dollar Retreats

.Copper advanced, paring its first weekly drop in six weeks, as the dollar’s retreat increased the appeal of commodities as alternative investments. Zinc rose to a six-month high and lead traded near a nine-month high.

Copper for three-month delivery rose as much as 0.7 percent to $8,366 a metric ton on the London Metal Exchange and traded at $8,360.25 a ton at 1:14 p.m. in Singapore. The contract is down 0.5 percent this week as the dollar is poised to snap a five-week losing streak against a six-currency basket.

“The moves have all been dollar-related recently and will continue to be at least until the Fed meeting next month, as investors anticipate further easing measures,” Gan Huaiming, an analyst at China International Futures Co., said from Shanghai. “On the fundamentals front, high prices are causing demand destruction as physical buyers stay away from the market.”

December-delivery copper on the Comex in New York gained 0.7 percent to $3.808 a pound, heading for a 0.8 percent weekly loss. The metal for January delivery in Shanghai added 0.4 percent to 62,930 yuan （$9,454） a ton, down 1.5 percent this week, the most since the week ending Sept. 10.

The dollar headed for its first weekly gain since Sept. 10 against the euro amid speculation that Group of 20 finance chiefs will seek to refrain from weakening their currencies to support economic growth. G-20 policy makers are gathering today and tomorrow in Gyeongju, South Korea.

Lead, Zinc

Zinc gained as much as 1.9 percent to $2,520 a ton on the LME, the highest price since April, extending yesterday’s 1.4 percent advance after China’s third-largest zinc producer said it shut its biggest smelter. Futures in Shanghai surged as much as 4 percent, trading at more than 20,000 yuan a ton for the first time since January.

Shenzhen Zhongjin Lingnan Nonfemet Co. suspended output at its Shaoguan smelter in Guangdong after authorities found that excessive levels of thallium were discharged by the plant into a river. Operations were halted from yesterday, the company said in a statement to the Shenzhen Stock Exchange last night.

Lead in London added as much as 1.2 percent to $2,513.75 a ton, after reaching $2,514 yesterday, the highest level since January. Zinc and lead are the worst-performing metals on the LME this year. Zinc is used to galvanize steel while lead is used in batteries.

“The jump in prices is just a knee-jerk reaction to the news and it’s providing temporary support to prices, which haven’t done so well this year,” said Wang Zhouyi, deputy manager of China International Futures （Shanghai） Co.’s research department.

Aluminum in London rose 0.8 percent to $2,369 a ton, tin climbed 0.4 percent to $26,550 a ton, while nickel gained 0.4 percent to $23,640 at 1:23 p.m. in Singapore.