A fee to borrow copper for a day surged to the highest in almost two years in London as traders who bet on declines scoured for metal.
Copper fell in London, set for the biggest monthly decline since May, on further signs demand has yet to revive as stockpiles of the metal increase.
Copper fell the most in two months on concern that China, the world’s biggest metal consumer, will take more steps to restrain the economy.
Copper reached a one-week low in London as reports of slumping prices, reduced industrial production and higher unemployment from Germany to Australia fanned concern about the outlook for demand.
Copper rose in London after imports of refined metal into China reached a 19-month high, indicating continued demand in the world’s biggest consumer.
Copper futures headed for the biggest weekly gain since early December on optimism that global growth will sustain demand for industrial metals.
Copper rose for a second day in New York amid speculation China and the U.S., the world’s two largest users of the metal, may move to stoke their economies.
Copper rose in London, rebounding from a three-week low, on speculation U.S. politicians will agree to increase the government’s borrowing limit and avoid a debt default.
BlueCrest Capital Management Ltd., Europe’s third-largest hedge fund firm, said it hired three traders from Deutsche Bank AG and UBS AG for a BlueCrest multistrategy credit fund.
"It's a soft picture."
- Andrew Silver on Nov 11, 2014