London copper and zinc prices hit their highest in around four months on Monday on demand prospects after a series of stimulus measures from top metals consumer China.
Three-month copper on the London Metal Exchange (LME) rose 0.9% to $10,076.50 per metric ton by 0447 GMT. It hit $10,158 earlier in the session, the highest since June 7, and was set for the best monthly gain since April.
The most-traded November copper contract on the Shanghai Futures Exchange gained 0.5% to 78,960 yuan ($11,259.89) a ton.
It earlier hit its highest level since July 16 at 79,460 yuan and was also on track for its best monthly gain since April.
This month, China released a slew of measures to support its economy, including lowering interest and mortgage rates, injecting liquidity into banks and easing home purchase restrictions.
“People are going into LME week very bullish. The concentrate supply story will definitely be talked about. Whatever the actual demand might be, (some) people are caught short,” said a trader, referring to the tightness in mined copper supply that has been supporting prices.
SHFE zinc rose 0.2% to 25,060 yuan a ton, having hit its highest since May 30 at 25,380 yuan earlier in the session. LME zinc rose 0.3% to $3,097.50, having earlier climbed to a level unseen since May 29 at $3,130. Zinc is mostly used in the construction sector.
LME aluminium edged up 0.1% at $2,650 a ton, nickel increased 0.7% to $17,115, tin climbed 0.4% to $33,050, and lead edged up 0.2% to $2,124.
Copper strides to 11-week peak after China unveils fiscal stimulus
SHFE aluminium rose 0.4% to 20,445 yuan a ton, nickel climbed 2.5% to 131,910 yuan, lead was up 0.5% at 16,955 yuan and tin jumped 2.9% to 264,740 yuan.
The price upside looks limited due to weak Chinese manufacturing data released on Monday, said Sandeep Daga, a director at Metal Intelligence Centre.
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