Copper prices jumped the most since 2009 amid growing optimism that European leaders will try to resolve the region’s debt crisis, reviving prospects for raw-materials demand.
Greek Prime Minister George Papandreou won a parliamentary vote in Athens on a new property tax, bolstering his chances of implementing austerity cuts aimed at securing international financial aid. The Standard & Poor’s GSCI index of 24 raw materials surged 3.3 percent, led by metals and energy. Copper slumped 16 percent last week, the most since December 2008.
“People were willing to bet on Europe working towards finding a solution,” William O’Neill, a partner at Logic Advisors in Upper Saddle River, New Jersey, said in a telephone interview. “Also, most commodities including copper, have become much cheaper in the past few days.”
Copper futures for December delivery rose 15.65 cents, or 4.8 percent, to settle at $3.4395 a pound at 1:16 p.m. on the Comex in New York, the most since Aug. 21, 2009. Monday, the metal touched $3.0715, the lowest since July 22, 2010.
On the London Metal Exchange, copper for delivery in three months gained $328, or 4.5 percent, to $7,594 a metric ton ($3.44 a pound).
Copper prices will average $8,000 a ton in 2012, and trade between $5,800 and $9,300, Edward Meir, an analyst at MF Global Holdings Ltd., said in a report today. Aluminum will average $2,350 a ton, trading between $1,900 and $2,650, Meir said.
“It would seem that the fall in prices over the past few days is now regarded as excessive,” Daniel Briesemann, an analyst at Commerzbank AG in Frankfurt, said in a report today. “The low price levels are viewed as attractive buying opportunities.”
In Chile, Codelco, the world’s largest copper producer, lost 1,413 tons of output after a Sept. 24 power disruption on Chile’s central grid, the Santiago-based company said in an e- mailed statement yesterday.
Tin for delivery in three months gained 7.2 percent to $21,795 a ton on the LME after Indonesia, the biggest exporter, said it plans to halt overseas shipments from Oct. 1 to support prices.
Aluminum, zinc, lead, and nickel also advanced in London.
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