“Copper rose in London from the lowest price since March after Morgan Stanley said demand is reviving in China, the world’s biggest consumer of the metal.
Chinese real metals demand is improving and supply-chain inventories of copper are low, the bank said in a report dated yesterday. China increased wind-farm approvals yesterday to try to reach a goal of installing the energy by 2015. Still, copper’s average price will slip 2 percent this year as inventories expand, an Australian government forecaster said.
“Major copper end-demand market indicators, like air- conditioner sales and state grid equipment orders, are all improving, while copper inventories at downstream producers remain low,” Rachel Zhang, an analyst at Morgan Stanley, wrote after a trip to China last week. “We believe restocking will be evident in the next couple of months.”
Copper for delivery in three months gained 1 percent to $7,603 a metric ton by 10:55 a.m. on the London Metal Exchange. Prices yesterday reached $7,486.25, the lowest since Aug. 21. Copper for delivery in May rose 1 percent to $3.44 a pound on the Comex in New York.
Metals slumped yesterday as concern about Europe’s debt crisis added to swelling copper inventories and curbs on the real-estate market in China. Prices rebounded today as investors speculated that the European Central Bank will continue to support lenders in Cyprus….”
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