Copper, Aluminum Climb on Economic Optimism, Inflation Concern

June 5 (Bloomberg) -- Copper and aluminum futures advanced in Shanghai on optimism that the global recession is easing and concern that the risk of inflation is increasing. Copper is up 72 percent this year in Shanghai. Initial U.S. jobless claims fell by 4,000 to 621,000 in the week ended May 30, in line with forecasts, government data show. The drop signaled the most acute phase of job losses may be over, analysts said. “The global economy has shown signs of recovering, which helps in copper’s case,” Wu Tianmin, analyst at BOC International (China) Ltd., said by phone from Shanghai today. “Also inflation concerns are underpinning the commodities market long-term.” September-delivery copper on the Shanghai Futures Exchange jumped as much as 4.2 percent to 41,260 yuan ($6,037) a metric ton, the highest since Oct. 15, before trading at 41,140 yuan at 10:01 a.m. local time. Aluminum gained as much as 4.9 percent to 13,630 yuan and traded at 13,505 yuan. Employers probably cut 520,000 U.S. jobs last month, the median of 76 estimates in a Bloomberg News survey. The government will issue May employment data today. On the London Metal Exchange, three-month copper is heading for its third weekly gain after advancing more than 6 percent since Friday. The contract was up 1.3 percent at $5,120 a ton. Manufacturing in China, the world’s largest copper user, expanded for a third month in May. A surge in lending and investment and rising retail sales have spurred confidence that Premier Wen Jiabao’s 4 trillion yuan ($585 billion) stimulus package is reviving growth in the world’s third-biggest economy. Among LME metals for three-month delivery, aluminum shed 0.6 percent to $1,573 a ton and lead lost 0.5 percent to $1,665 a ton. Zinc and nickel were little changed at $1,583 a ton and $14,650 a ton. Tin hadn’t traded by 10:15 a.m. local time.