HANOI- 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) rose 0.7 percent to $10,051.50 per metric ton. 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 increased 0.3 percent 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 hit its highest since May 30 at 25,380 yuan, before easing 0.2 percent to 24,975 yuan. LME zinc rose 0.2 percent 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.
