METALS-Shanghai aluminium hits nearly 9-month high on prospect of better China demand

By Hongmei Li

SINGAPORE, July 22 (Reuters) - The most-traded aluminium contract on the Shanghai Futures Exchange on Tuesday hit the highest since November on possibly better demand for metals from China as authorities vow to stabilise industrial growth, including metals.

SHFE aluminium SAFcv1 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 SAOcv1 gained 4.23% to 3,452 yuan a ton, or the highest since Feb 26, and aluminium stocks at the SHFE-monitored warehouses AL-STX-SGH 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 stabilise 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 SNIcv1 gained 1.51% to 123,530 yuan a ton, tin SSNcv1 rose 1.11% to 268,520 yuan, zinc SZNcv1 grew 0.7% to 22,945 yuan, being the highest since April 2, copper SCFcv1 added 0.61% to 79,740 yuan, while lead SPBcv1 ticked down 0.21% to 16,900 yuan.

On the London Metals Exchange, the three-month zinc CMZN3 gained 0.14% to $2,842.5 a ton, tin CMSN3 inched up 0.1% to $33,845, and copper CMCU3 added 0.07% to $9,866.5, while lead CMPB3 ebbed 0.55% to $2,003.5, nickel CMNI3 fell 0.18% to $15,495, and aliuminium CMAL3 traded flat at $2,645.5.

For the top stories in metals and other news, click

TOP/MTL or MET/L

($1 = 7.1741 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