Copper bounced from a seven-week low to end up on Tuesday, buoyed by surprisingly strong US factory orders data that underscored recovery optimism in Western economies, even as Chinese growth slowed. Gains fed through across base metals, with aluminium hitting a fresh three-year high above $2,800 per tonne amid concerns about tight physical supplies, strong US April auto sales data.
"I think that economic news is helping copper and base metals," said Justin Lennon, analyst with Mitsui Bussan Commodities in New York. The COMEX July copper contract firmed 5.70 cents, or 1.3 percent, to settle at $4.2530 per lb. Three month aluminium climbed to its highest since August 2008 at $2,803 a tonne, before ending up $30 at $2,797. Rising energy costs have helped to propel the power intensive metal to its highest levels in almost three years.