Copper in Shanghai at 15-month high

Shanghai : Copper in Shanghai jumped to the highest level in more than 15 months, tracking overnight gains in London, as global equity markets advanced on optimism that the economic recovery is gathering pace.

Prices gained as much as 2.4 per cent yesterday in London as the Standard & Poor's 500 Index also rose to a 15-month high after initial jobless claims in the US fell more than forecast and orders for durable goods excluding transportation topped economists' estimates. The dollar fell 0.2 per cent against a basket of six currencies yesterday, paring a rally this month to 3.8 per cent.

"Rising US equities and a falling dollar increased risk appetite and spurred more buying," Wang Lei, an analyst at Haitong Futures Co. said by phone from Shanghai.

Copper for March-delivery on the Shanghai Futures Exchange rose as much as 1.1 per cent to 57,720 yuan ($8,454) a metric tonne, the highest price for a most-active contract since September 4, 2008. It closed at 57,630 yuan.

Copper for delivery in three months on the London Metal Exchange ended 1 per cent higher at $7,070 a ton Thursday. The London exchange was closed yesterday for the Christmas Day holiday.

London copper prices more than doubled this year as the world economy recovered from its worst recession since the Second World War. Still, reduced consumption of the metal used in electrical goods, construction and automobiles boosted LME stockpiles by 43 per cent this year.