Copper prices rose close to a three-year high on Monday after a boost in production at Chinese manufacturers indicated strong levels of economic growth for the world's biggest importer of industrial metals.
China's producer price index, a measure of the inflationary impact of price rises at the production stage, jumped 6.9% in September, topping expectations of a 6.3% rise.
China gross domestic product
Analysts said the data pointed to a robust print on economic growth for the third quarter. Gross domestic product data is
published on Thursday and is expected to show 6.8% growth according to a poll by Reuters.
On Sunday, the People's Bank of China said the economy was set to grow at 7% in the third quarter.
Chinese copper imports
The inflation reading came after data showed that China's copper imports jumped in September. Unwrought copper imports surged 26.5% from a year ago, the data confirmed.
Helen Lau at Argonaut Securities in Hong Kong told Reuters: "Based on these quite solid fundamentals, people will react very positively to any newsflow on copper."
Copper price on Comex rose 2.4% on Monday morning to $3.21 per pound, and on the London Metal Exchange, three month copper was up 2.4% at $7,054.50 a metric tonne.