Shanghai aluminium hits nearly 9-month high on prospect of better China demand
SHFE aluminium rose 0.75% to 20,900 yuan ($2,913.26) a ton by 0702 GMT, or the highest since November 12.
'Aluminium fundamentals are the most solid among metals in China, especially being the only metal with a smelting capacity capped at 45 million tons, and alumina price surge has also been supportive,' a Shanghai-based metals analyst at a futures company said.
SHFE alumina gained 4.23% to 3,452 yuan a ton, or the highest since Feb 26, and aluminium stocks at the SHFE-monitored warehouses totalled 108,822 tons by July 18, or the lowest since February 2024 albeit three consecutive weeks of rebounds.
'The Chinese government's working plans to stabilize industrial growth and the launch of the giant Tibet hydropower plant are all positive signals to the metals market, with the prospect of the country's metals demand boosting the sentiment,' a Beijing-based futures analyst at a futures company said.
However, it's unclear how much actual demand will materialise, the analyst added.
A Shanghai analyst echoed the view, saying, 'Amid all the uncertainties, such news sounds definite and positive, which may support the commodities futures market for a while.'
On July 19, China began building the world's largest hydropower dam on the eastern rim of the Tibetan Plateau at an estimated cost of at least $170 billion.
Meanwhile, SHFE nickel gained 1.51% to 123,530 yuan a ton, tin rose 1.11% to 268,520 yuan, zinc grew 0.7% to 22,945 yuan, being the highest since April 2, copper added 0.61% to 79,740 yuan, while lead ticked down 0.21% to 16,900 yuan.
On the London Metals Exchange, the three-month zinc gained 0.14% to $2,842.5 a ton, tin inched up 0.1% to $33,845, and copper added 0.07% to $9,866.5, while lead ebbed 0.55% to $2,003.5, nickel fell 0.18% to $15,495, and aliuminium traded flat at $2,645.5.
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