SHANGHAI copper climbed to its highest level since August yesterday, rising for a fourth straight session, as overnight gains in New York and strong U.S. data underpinned prices.

    Copper futures in New York rallied more than 2 percent Tuesday after an errant buy order placed shortly before midday there unleashed a burst of buying as stops were triggered, sending prices to their highest since April.

    “Shanghai prices are to some extent following that abnormal rally overnight on COMEX,” said a Shanghai-based trader. “We saw some good fresh buying this morning. Since the Western markets are closed, people are focusing today on the Chinese equity and money markets.”

    The most-traded March copper contract on the Shanghai Futures Exchange rose 2 percent to close at 52,360 yuan (US$8,600) a ton, after hitting a four-month high of 52,640 yuan earlier in the session.

    The London Metal Exchange was shut yesterday and today for Christmas and Boxing Day holidays. COMEX was closed yesterday.

    Shanghai and London copper prices have dropped around 8 percent this year, reflecting slowing demand from top consumer China that has kept prices in narrow ranges for most of the second half of 2013.

    Recently, liquidity issues in China have also added to worries. China’s interbank cash crunch eased Tuesday after the central bank injected funds through normal channels for the first time in three weeks, but traders warned that conditions remained tense.

    However, strong data from the world’s largest economy, the United States, should support copper prices, they added.

    Orders for long-lasting U.S. manufactured goods surged in November and a gauge of planned business spending on capital goods recorded its largest increase in nearly a year, pointing to sustained strength in the economy. (SD-Agencies)