August 27, 2018 / 4:16 AM / a month ago

METALS-Shanghai zinc prices climb for 6th day as inventories plunge

 (Adds Shanghai closing prices)
    BEIJING, Aug 27 (Reuters) - Shanghai base metal prices rose
on Monday, with zinc climbing for a sixth day and hitting a
two-week high as inventories in China languish at their lowest
in a decade. 
    Zinc stocks in warehouses monitored by the Shanghai Futures
Exchange ZN-STX-SGH fell 11.8 percent last week to 30,800
tonnes, their lowest since October 2007. Meanwhile, zinc
inventories in warehouses approved by the London Metal Exchange
have dropped for eight straight days.
    "Zinc fell a lot previously. This time the rebound will be
more obvious," said Xu Maili, director of base metals research
at Everbright Futures in Shanghai.
    ShFE zinc has lost 15 percent year-to-date, weighed down by
concerns over global oversupply and fears the U.S-China trade
row will hurt demand for industrial metals. 
    The London Metal Exchange is closed on Monday for a public
holiday.        
        
    FUNDAMENTALS
    * ZINC: The most-traded zinc contract on the ShFE, for
October, climbed as much as 2.3 percent to 21,400 yuan 
($3,113.18) a tonne, its highest since Aug. 10, before closing
up 1.8 percent for its biggest daily jump since July 19.
Three-month LME zinc closed up 2.7 percent on Friday.   
 
    * COPPER: ShFE copper gained ground for a second
day, finishing up 0.7 percent at 48,790 yuan a tonne.
    * OTHER METALS: Zinc's sister metal lead added as
much as 1.8 percent in Shanghai, touching its highest since July
30, before closing up 1.5 percent. Aluminium ended
flat, while nickel was the lone laggard, falling 0.9
percent to 108,760 yuan a tonne.
    * ALUMINIUM: China Hongqiao Group, the world's
biggest aluminium producer, reported a 21 percent jump in
first-half net profit despite lower revenues as it avoided a
repeat of hefty impairments seen a year earlier.
    * AUSTRALIA MINING: As Australia's big miners gear up for a
new round of expansion after years of belt tightening, prices
for everything from labour to fuel to equipment have begun to
rise, driving up costs and eating into margins.
    * For the top stories in metals and other news, click       
 or     
        
    MARKETS NEWS    
    * Asian shares rose on Monday, taking heart from comments by
the Federal Reserve chairman that drove Wall Street to record
highs on Friday, and as a tweak to the way China's central bank
manages its currency boosted the yuan and stocks.
    
    PRICES           
 BASE METALS PRICES                           CLOSE
 Most active ShFE copper                      48780
 Most active ShFE aluminium                   14730
 Most active ShFE zinc                        21305
 Most active ShFE lead                        18420
 Most active ShFE nickel                     108760
 Most active ShFE tin                        145880
 ($1 = 6.8740 Chinese yuan renminbi)

    
 (Reporting by Tom Daly
Editing by Joseph Radford)
  
 
 
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