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Copper Rises, Heads for 20-Week High as China Supports Housing

Feb. 8 (Bloomberg) -- Copper rose in New York, heading for the highest close in 20 weeks, after China’s central bank pledged to support the local housing market, underpinning one of the main sources of demand for the metal.

Officials will boost support for construction of affordable housing, the People’s Bank of China said yesterday evening. Chinese equities jumped the most in three weeks today. Copper also gained as the euro advanced against the dollar amid efforts by Greek politicians to secure a second aid package.

“News that China’s government will increase support for building affordable houses and support first-home buyers may well have provided support for the metals,” William Adams, an analyst at Basemetals.com in London, said in a report. “The run-up in equities and metals prices now seems to be gaining momentum, and this on its own may well attract more buying.”

Copper for March delivery advanced 1 percent to $3.9135 a pound by 7:45 a.m. on the Comex in New York. A close at that price would be the highest since Sept. 16. Copper for three- month delivery rose 1.5 percent to $8,606 a metric ton on the London Metal Exchange, and tin reached a six-month high.

China is the world’s biggest copper user. Construction accounts for 25 percent of consumption of the metal, according to the Copper Development Association.

http://www.businessweek.com/news/2012-02-08/copper-rises-heads-for-20-week-high-as-china-supports-housing.html