METALS-Shanghai metals rise after China vows to shore up industrial growth

By Hongmei Li

SINGAPORE, July 21 (Reuters) - The most-traded metals contracts on the Shanghai Futures Exchange rose on Monday after China's industry ministry vowed to stabilise the machinery, autos and electrical equipment sectors.

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effective upgrade in quality terms and reasonable growth as measured by quantities, while promoting an "orderly exit of outdated production capacity", Tao added.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 SZNcv1 gained the most, rising 2.8% to 22,925 yuan ($3,194.85) a ton as of 0705 GMT. Earlier, the contract hit 22,945 yuan, the highest since April 3.

SHFE nickel SNIcv1 added 1.91% to 122,550 yuan, copper SCFcv1 rose 1.77% to 79,700 yuan, while aluminium SAFcv1 climbed 1.63% to a peak since March 27 at 20,840 yuan. Tin SSNcv1 advanced 1.27% to 267,250 yuan, and lead SPBcv1 gained 0.86% to 16,960 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 growth will strengthen more remarkably," a Shanghai-based metals analyst at a futures company said.

Prices on the London Metal Exchange also gained, except for lead. Three-month zinc CMZN3 climbed the most, rising 0.94% to $2,845 per ton. Earlier in the session, it touched $2,850, the highest since April 1.

LME copper CMCU3 rose 0.85% to $9,862 per ton after touching $9,883 earlier - the highest since July 8. Nickel CMNI3 added 0.74% to $15,330, tin CMSN3 gained 0.64% to $33,660, while aluminium CMAL3 rose 0.48% to $2,642, the highest since June 23.

Lead CMPB3 eased 0.07% to $2,008.5.

For the top stories in metals and other news, click

TOP/MTL or MET/L

($1 = 7.1756 Chinese yuan)

 For related news and prices, click on the codes in brackets: LME price overview      RING= COMEX copper futures  0#HG: All metals news         MTL   All commodities news      C 
 Foreign exchange rates FX=SPEED GUIDES LME/INDEX