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.

* For the top stories in metals and other news, click or

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)