Copper rose to new multi-month highs on Wednesday, as bullish market sentiment was reinforced by upbeat US new factory orders data, aided by concerns over harsh cold weather in parts of China. Shanghai copper thus staged 10 consecutive days of gains, matching record runs of rises in December 2005 and April 1994.

The weather has had some impact on production in China as the present cold spell has meant reduced power supply for some hours of the day, but so far the impact is not significant.

The US released mixed economic data on Wednesday, showing sharper-than-expected home sales in November, but a surge in new factory orders offered assurance the economic recovery remained on track.

Recent manufacturing data from the US and China pointing to a steady economic recovery painted a rosy picture for industrial metals demand.

Three-month copper on the London Metal Exchange hit $7,606, highest since August 28, 2008, but some analysts warned the frenzy could fizzle soon. “The upward momentum in copper is nearing an end, partly as prices are under the pressure from commodity index rebalancing. The growing LME stocks also weigh,” according to one.