Copper rebounded from the lowest close since June in New York before government data projected to show stronger economic growth in the U.S., the world’s second-biggest consumer of the metal.
Gross domestic product expanded 4.6 percent in the second quarter, more than August’s 4.2 percent estimate, according to a Bloomberg survey of economists before a report today. Copper is still set to fall for a third week as a stronger dollar makes raw materials priced in greenbacks more expensive in terms of other monies.
“The main highlights today will be in the U.S. with the third estimate of Q2 GDP,” RBC Capital Markets Ltd. said.
Futures for December delivery climbed 0.6 percent to $3.0475 a pound by 7:19 a.m. on the Comex in New York. Prices slid 4.9 percent this quarter. Copper for delivery in three months rose 0.6 percent to $6,732 a metric ton on the London Metal Exchange.
“We still expect the base complex to stay weak/drift lower, though copper is finding a strong support around $6,700,” RBC said in a note.
Copper inventories tracked by the LME fell 0.7 percent to 154,500 tons, while orders to remove the metal from warehouses declined 4.1 percent to 25,650 tons, data showed today. Inventories monitored by the Shanghai Futures Exchange gained for a third week to 81,554 tons, the bourse said.
The Shanghai exchange will be closed from Oct. 1 through Oct. 7 for China’s Golden Week holiday. The nation is the biggest global copper buyer.