Aluminum gains in London as U.S. demand outlook improves

Aluminum climbed for the first time in three days as labor-market gains added to signs of a strengthening U.S. economy, bolstering demand prospects for the metal used in construction, autos and cans.

The four-week moving average of Americans filing claims for unemployment benefits dropped to the lowest in more than 14 years, a government report showed today. Yesterday, ADP Research Institute said companies in October added 230,000 jobs, the most since June.

The data “showed that the labor markets are continuing to improve,” Tim Evans, the chief market strategist at Long Leaf Trading Group, Inc. in Chicago, said in a telephone interview. “We’ve seen an improvement in the industrial metals, and better jobs and a better economy is basically the nuts and bolts of it.”

Aluminum for delivery in three months climbed 0.8 percent to settle at $2,076 a metric ton by 5:53 p.m. on the London Metal Exchange. The commodity, which fell 0.5 percent the previous two sessions, is headed for the fourth weekly increase since Oct. 3.

Job gains in the U.S. this year are poised for the best performance since 1999. The October employment report, due from the Labor Department tomorrow, may show payrolls exceeded 200,000, according to a Bloomberg survey of economists.

Copper for delivery in three months advanced 0.3 percent to $6,660 a ton ($3.02 a pound). Lead, zinc, nickel and tin also rose in London.

On the Comex in New York, copper futures for December delivery added 0.3 percent to $3.0175 a pound.