Shanghai metals rise after China vows to shore up industrial growth
China will roll out action plans to stabilise growth in these industrial sectors, Tao Qing, an official from the ministry, said on Friday.
The move is designed to "improve premium supply capacity" to set up the industry for an effective upgrade in quality terms and reasonable growth as measured by quantities, while promoting an "orderly exit of outdated production capacity", Tao added.
SHFE zinc gained the most, rising 2.69 per cent to 22,900 yuan (US$3,190.48) a ton as of 0102 GMT. Earlier, the contract hit 22,915 yuan, the highest since May 14.
SHFE nickel added 1.25 per cent to 121,750 yuan, aluminium gained 1.17 per cent to 20,745 yuan, lead grew 1.04 per cent to 16,990 yuan, copper rose 0.87 per cent to 78,990 yuan and tin advanced 0.56 per cent to 265,390 yuan.
"What China's industrial ministry said has been encouraging for metals in general," a Beijing-based metals analyst at a futures company said, adding, "Industrial sectors are all very relevant to metals."
In addition to the downstream industries, the action plan will cover 10 key industries, including steel, nonferrous metals, petrochemicals and construction materials, the ministry noted.
"Metals in general have responded positively to the news, and whichever with more room for price growths will strengthen more remarkably," a Shanghai-based metals analyst at a futures company said.
On Monday, LME metals fluctuated narrowly, after Friday's surge, with zinc up 0.5 per cent to US$2,832.5 per ton. Earlier in the session, it touched US$2,837, the highest since April 1.
LME aluminium rose 0.15 per cent to US$2,633.5, lead gained 0.13 per cent to US$33,490, nickel added 0.11 per cent to US$15,235, while lead eased 0.1 per cent to US$2,008. Copper traded flat at US$9,776.5 after touching US$9,777 on Friday, the highest since July 8.
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