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Copper Rises as Global Recovery Strengthens; Tin Jumps to Record
By Yi Tian and Maria Kolesnikova - Jan 22, 2011 5:23 AM GMT+1000

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Copper rebounded from the biggest drop in two months on signs that the global economic recovery will strengthen, boosting demand for the metal used in buildings and electricity-transmission grids. Tin reached a record.

Business confidence in Germany unexpectedly climbed to a record in January, while French business sentiment advanced to a three-year high. Chinas economic expansion accelerated by 9.8 percent in the fourth quarter compared with 9.6 percent in the previous three-months. In the U.S., applications for jobless benefits fell more than forecast, and the index of leading indicators topped estimates.

The market has been driven by demand from Asia, and this demand pattern will continue with growth in the U.S. and improvement in Europe, said William ONeill, a partner at Logic Advisors in Upper Saddle River, New Jersey.

Copper futures for March delivery rose 3.70 cents, or 0.9 percent, to close at $4.309 a pound at 1:17 p.m. on the Comex in New York. Yesterday, the price fell 2.2 percent, the biggest decline since Nov. 16. The metal slid 2.3 percent this week.

Yesterday was a bit overdone, said David Thurtell, an analyst at Citigroup Inc. in London. All the forward indicators point to ongoing strong growth in China.

Copper has gained 31 percent in the past 12 months, reaching a record $4.498 on Jan. 3.

The outlook for copper is positive, Freeport-McMoRan Copper & Gold Inc. Chief Executive Officer Richard Adkerson said yesterday on an earnings conference call. The company is the worlds biggest publicly traded producer of the metal.

On the London Metal Exchange, copper for delivery in three months added $86, or 0.9 percent, to $9,441 a metric ton ($4.28 a pound). On Jan. 19, the metal reached a record $9,781.