Dec. 29 （Bloomberg） -- Copper climbed to a record in London on speculation faster economic growth next year will support demand for industrial metals.
The Federal Reserve today may buy $4 billion to $6 billion of debt as part of its plan to spur the U.S. economy. Gross domestic product in the U.S., the world’s second largest copper buyer, will accelerate by the second quarter and keep growing the rest of the year, a Bloomberg survey of economists showed.
“People are committing to take metal for long term contracts,” said Malcolm Freeman, managing director of metals trading company Ambrian Commodities Ltd. in London. “That would suggest more confidence.”
Copper for delivery in three months rose as much as $101, or 1.1 percent, to the all-time high of $9,447 a metric ton, and was up 0.8 percent at $9,420 a ton by 9:47 a.m. on the London Metal Exchange. In a sign of limited supplies, the price for immediate delivery copper was $53 higher than the three-month price. The exchange was closed the past two days because of public holidays.
In New York, copper futures for March delivery fell 0.8 cent, or 0.2 percent, to $4.32 a pound on the Comex after yesterday rising to the record $4.335 a pound.
Copper in London has climbed 28 percent this year as growth in China led a recovery from the first global recession since World War II. On the LME, tin has jumped the most, at 59 percent this year, followed by nickel’s 30 percent advance. Zinc has dropped 7.4 percent this year.
Next year, copper use will outpace supply by 825,000 tons, more than twice the inventory in LME-monitored warehouses, according to Barclays Capital. Stockpiles are down 26 percent this year at 370,950 tons, according to data from the exchange.
Aluminum gained 2 percent to $2,460 a ton, lead jumped 2.6 percent to $2,492.50 a ton and tin added 0.4 percent to $26,900 a ton. Nickel was little changed at $24,140 a ton and zinc increased 2.9 percent to $2,374.50 a ton.
--Editors: Claudia Carpenter, Dan Weeks
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