Copper and other metals rose before the publication of US inflation data

The copper prices and other base metals rose on Thursday ahead of key US data releases as investors bought them as an inflation hedge.

LME copper rose 1.9% to $10,252 a tonne after LME inventories fell to a two-month low of 76,325 tonnes.

Aluminum prices also climbed to their highest level in more than 13 years, fueled by lingering concerns about smelter closures and ignoring large inventory build-ups.

Three-month aluminum on the London Metal Exchange (LME) added 1.2% to $3,304.50 a tonne at 11:20 GMT, its highest level since July 2008.

“Aluminum is the most energy consuming metal and we are faced with these continuously high gas prices and energy costs, in addition to China’s attempts to curb pollutionsaid Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

The market was awaiting data from the US Consumer Price Index, which is expected to have risen more than 7% year-on-year in January.

“That makes commodities an attractive space, not only because of the fundamentals, which are showing tightness, but also because of their ability to safeguard yields in an inflationary environment.Hansen added.

The most traded aluminum contract on the Shanghai Futures Exchange, for March delivery, closed the session 2.1% higher at 23,290 yuan ($3,664.66) a tonne. It hit as high as 23,415 yuan, its highest since Oct. 21.

Aluminum stocks in LME warehouses grew by 176,300 tonnes, or 42%, to 595,150 tonnes. The price on the LME briefly moved into negative territory after the data, but then rallied.

With information from Reuters.