“Industrial metals rose in London, paced by copper and nickel, after U.S. lawmakers passed a bill to avert the so-called fiscal cliff of higher taxes and cuts in government spending.
The U.S. House approved a measure undoing income-tax increases for most households in the country, the world’s second-largest copper consumer after China. President Barack Obamasaid he would sign the bill into law. Equities climbed in Asia and Europe, Treasuries retreated for a second day and raw materials from crude oil to sugar strengthened.
“The automatic spending cuts seem to have been avoided,” Daniel Briesemann, an analyst at Commerzbank AG in Frankfurt, said by e-mail today. “That’s probably behind this morning’s higher risk appetite, also supported by firm Asian equity markets.”
Copper for delivery in three months climbed 2 percent to $8,091 a metric ton by 9:34 a.m. on the London Metal Exchange. Prices jumped as much as 2.5 percent, the most since Nov. 19. Copper for delivery in March increased 0.9 percent to $3.684 a pound on the Comex in New York. Markets in China are closed for a holiday until Jan. 3.
Prices advanced 4.4 percent last year on the LME, the third annual gain in four, helped by forecasts for supply of the metal used in pipes and wiring to lag behind demand. Copper inventories tracked by the exchange declined 14 percent in 2012, the third straight year of contraction.
Copper stockpiles climbed for a 17th session to 320,500 tons, remaining at the highest level since Feb. 6, LME figures showed today. Orders to withdraw the metal from warehouses were little changed at 51,600 tons.
Nickel for delivery in three months surged as much as 2.9 percent on the LME, leading gains among the exchange’s six main metals. Lead reached $2,380.25 a ton, the highest price since September 2011. Aluminum, zinc and tin climbed…”
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