BEIJING, Aug 27 (Reuters) - Shanghai base metal prices mostly rose in early trade on Monday, with zinc climbing for a sixth session and hitting a two-week high as inventories in China languish at their lowest in a decade. The London Metal Exchange is closed on Monday for a public holiday. FUNDAMENTALS * ZINC: The most-traded zinc contract on the Shanghai Futures Exchange, for October, climbed as much as 2.2 percent to 21,385 yuan ($3,111.00) a tonne, its highest since Aug. 10, and was up 1.4 percent as of 0207 GMT. Three-month LME zinc closed up 2.7 percent on Friday. * ZINC STOCKS: Zinc inventories in warehouses monitored by the ShFEfell 11.8 percent last week to 30,800 tonnes, their lowest since October 2007. Stocks in warehouses approved by the LME have fallen for eight straight days. * COPPER: ShFE copper was trading higher for a second day, rising 0.7 percent to 48,780 yuan a tonne. * ALUMINIUM: Shanghai aluminium climbed as much as 0.9 percent to 14,865 yuan a tonne, its highest since Aug. 9, as Chinese smelters' costs increase. * HONGQIAO: 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. * CHINA: Profits earned by China's industrial firms rose 16.2 percent in July from a year earlier, slowing from 20 percent in June, the statistics bureau said on Monday. * 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 early on Monday, taking support from Wall Street's gains on Friday after U.S. Federal Reserve Chairman Jerome Powell said a gradual approach to raising rates was best to protect the U.S. economy and job growth. DATA AHEAD (GMT) 0800 Germany Ifo business climate Aug 1230 U.S. National activity index Jul PRICES BASE METALS PRICES 0159 GMT Most active ShFE copper 48770 Most active ShFE aluminium 14785 Most active ShFE zinc 21200 Most active ShFE lead 18340 Most active ShFE nickel 108670 Most active ShFE tin 145580 ($1 = 6.8740 Chinese yuan renminbi) (Reporting by Tom Daly Editing by Joseph Radford)
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