Forexpros – Copper futures rose to a three-day high on Tuesday, boosted by data showing copper imports from top consumer China rose to a record in December as markets continued to monitor developments surrounding the euro zone’s debt crisis.
On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.461 a pound during European morning trade, rallying 1.35%.
It earlier rose by as much as 1.5% to trade at USD3.466 a pound, the highest since January 5.
Sentiment on the industrial metal improved after China’s copper imports in December surged to a record, as purchases were boosted by lower prices and pre-Lunar New Year holiday stockpiling.
According to China’s General Administration of Customs, inbound copper shipments totaled 508,942 metric tons in December, gaining for the seventh consecutive month. The figure was nearly 13% higher than copper imports in the previous month.
Speculation that Beijing will loosen monetary policy in the near-term further supported prices after government data showed that Chinese imports grew at the slowest pace since November 2009 in December, underlining concerns over a slowdown in the world’ second largest economy.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Meanwhile, markets were looking forward to a meeting between German Chancellor Angela Merkel and International Monetary Fund President Christine Lagarde later Tuesday in order to discuss Greece’s bailout package.
The meeting comes a day after Merkel met with French President Nicolas Sarkozy in Berlin, renewing optimism European leaders will increase efforts to resolve the region’s ongoing debt crisis.
In a press conference Monday, Merkel warned Greece that it would not be possible to give further financial aid without swift progress on its second rescue package, including a voluntary write-down on Greek debt held by private creditors.
The U.S. dollar was weaker against its major counterparts, boosting the appeal of dollar-denominated commodities. The dollar index retreated 0.2% to trade at 81.14.
Elsewhere on the Comex, gold for February delivery jumped 1.15% to trade at USD1,626.95 a troy ounce, while silver for March delivery surged 2.6% to trade at USD29.53 a troy ounce.
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