Copper Advances in Asia on Expectations of Higher China Imports

Copper gained in Asia on speculation China, the world¡¯s largest consumer, bought more metal last month following weaker-than-expected January imports.

China cut January imports of the metal and products by 19 percent from the previous month to 232,701 metric tons, according to customs data. December imports were the highest since April 2007 as lower international prices and scrap supplies encouraged buying. China is expected to report preliminary data tomorrow.

¡°Trade flow was disrupted in January because of the Lunar New Year break,¡± Pang Ying, an analyst at Shenzhen Rongtuo Trading Co., said today. ¡°The backlog of orders are expected to be reflected in February¡¯s figures.¡± Businesses closed during the last week of January for the holiday.

London Metal Exchange copper for delivery in three months rose as much as 1.6 percent to $3,670 a ton, and traded at $3,632 at 4:10 p.m. Singapore time. The metal fell as much as 3.6 percent yesterday, the most in a week. Copper for June delivery on the Shanghai Futures Exchange gained 1 percent to end the day at 29,210 yuan ($4,270) a ton.

Futures also gained as some Chinese investors bought the metal to take advantage of the widening price gap between London and Shanghai.

Futures in China have climbed 4.7 percent in the past week, compared with a 2.7 percent gain on the London Metal Exchange. Importers can profit from buying cheaper material overseas and selling on the domestic market.

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