Copper prices rise as investors remain confident demand will continue to grow in China

Copper rises as demand from China appears strong

NEW YORK — Copper prices rose again Thursday as investors remain confident that demand for the metal will remain strong.

Brian Hicks, who co-manages the Global Resources Fund at U.S. Global Investors, said reports continue to show demand for copper, particularly in China, remains high. China is one of the largest importers of copper.

Hicks noted that copper prices in Shanghai are trading at a premium to the London markets, a sign that Chinese demand will continue to grow.

Copper prices have also been helped in recent days by upbeat industrial and manufacturing reports in the U.S. On Thursday, the Philadelphia Federal Reserve said its regional manufacturing index rose to 17.6 in February from 15.2 in January. That follows two reports this week that also showed the sector is improving.

Copper for May delivery rose 4.65 cents to settle at $3.3055 a pound. The price of copper has risen in seven of the past eight trading sessions, gaining 15.7 percent during that stretch.

Most other metal prices fell modestly. Gold for April delivery dipped $1.40 to settle at $1,118.70 an ounce. March silver fell 3.8 cents to $16.06 an ounce.

Energy prices were mixed after the Energy Information Administration reported on weekly reserves.

Natural gas prices tumbled after the EIA said supplies are still nearly 3 percent higher than the five-year average even as cold weather has blanketed much of the country. Natural gas for March delivery lost 21.4 cents to settle at $5.172 per 1,000 cubic feet.

In a separate report, the EIA said supplies of distillates, including heating oil, fell almost twice as much as expected last week, which helped push prices higher. Crude inventories rose, but still remained below year-ago levels.

Benchmark crude for March delivery added $1.73 to settle at $79.06 a barrel on the Nymex. That’s the highest settle for oil in more than a month.

Heating oil added 4.49 cents to settle at $2.0516 a gallon, and gasoline rose 6.21 cents to settle at $2.0692 a gallon.

Elsewhere, grain prices all fell. Wheat for May delivery dropped 9.75 cents to settle at $4.995 a bushel, while soybeans fell 3.5 cents to $9.575 a bushel. Corn fell 2.75 cents to $3.69 a bushel.