SINGAPORE, May 29 (Reuters) – London aluminium prices, which stayed flat on Friday, were set for their strongest monthly gain since January 2019, underpinned by a solid recovery in demand from top consumer China.
Three-month aluminium contract on the London Metal Exchange was flat at $1,537 a tonne as of 0701 GMT, but rose 2.7% on a monthly basis and was hovering around a two-month high.
The most-traded aluminium contract on the Shanghai Futures Exchange (ShFE) closed up 0.8% at 13,215 yuan ($1,847.99) a tonne, having touched its highest since March 3 at 13,260 yuan a tonne earlier in the session.
“The aluminium price recovery in Chinese market was primarily driven by quick inventory decline and positive sentiments towards demand recovery,” said analyst Helen Lau of Argonaut Securities in a note.
FUNDAMENTALS
* STOCKS: ShFE aluminium inventories AL-STX-SGH were at their lowest since Feb. 7 as of the end of last week, the latest exchange data showed.
* ALCOA: Alcoa is considering laying off up to 534 workers from its San Ciprian aluminium plant due to persistent losses.
* OTHER PRICES: LME copper rose 0.3% to $5,346.50 a tonne, nickel eased 0.5% to $12,185 a tonne while ShFE copper advanced 0.7% to 43,940 yuan a tonne and nickel edged down 0.1% at 100,080 yuan a tonne.
* HONG KONG: Gains were capped as investors eyed U.S. response to China’s parliament approving a national security legislation for Hong Kong.
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PRICES
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Most active ShFE nickel
Three month LME tin
Most active ShFE tin
ARBS ($1 = 7.1510 yuan)