LME copper and zinc hit 4-month highs on China stimulus
Sept 30 (Reuters) -London copper and zinc prices hit their highest levels in about four months on Monday, as top consumer China released a series of supportive measures to boost its economy.
Three-month copper on the London Metal Exchange (LME) CMCU3 rose 0.7% to $10,051.50 per metric ton by 0220 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 SCFcv1 increased 0.3% to 78,800 yuan ($11,233.71) a ton. It hit the highest since July 16 earlier in the session at 79,460 yuan and was also on track for its best monthly gain since April.
Copper is used as a gauge of the global economic health and China accounts for about half of its global demand.
A slew of measures from China to support its economy, from lowering interest and mortgage rates to injecting liquidity into banks to easing home purchase restrictions, has boosted hopes of a rebound in metals demand.
SHFE zinc SZNcv1 hit its highest since May 30 at 25,380 yuan, before easing 0.2% to 24,975 yuan. LME zinc CMZN3 rose 0.2% to $3,094.50, having climbed to a level unseen since May 29 at $3,130 earlier in the day.
Zinc is mostly used in the construction sector and China is also its biggest consumer. The supportive measures for the country's troubled property sector could boost zinc demand.
LME aluminium CMAL3 edged up 0.1% at $2,648 a ton, nickel CMNI3 increased 0.6% to $17,090, tin CMSN3 climbed 0.5% to $33,090, while lead CMPB3 fell 0.3% to $2,114.
SHFE aluminium SAFcv1 rose 0.5% to 20,460 yuan a ton, nickel SNIcv1 climbed 2% to 131,360 yuan, lead SPBcv1 was up 0.5% at 16,945 yuan, tin SSNcv1 jumped 2.8% to 264,650 yuan.
However, the price gains were limited by concerns over physical demand being dampened by recent price increases, and weak Chinese manufacturing data.
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Reporting by Mai Nguyen in Hanoi; Editing by Subhranshu Sahu
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