SINGAPORE — The most-traded metals contracts on the Shanghai Futures Exchange rose on Monday after China’s industry ministry last week vowed to stabilise the machinery, autos and electrical equipment sectors.
China will roll out action plans to stabilise growth in these industrial sectors, Tao Qing, an official from the ministry, said on Friday.
The move is designed to “improve premium supply capacity” to set up the industry for an effective upgrade in quality terms and reasonable growth as measured by quantities, while promoting an “orderly exit of outdated production capacity”, Tao added.
SHFE zinc gained the most, rising 2.69 percent to 22,900 yuan ($3,190.48) a ton as of 0102 GMT. Earlier, the contract hit 22,915 yuan, the highest since May 14.
SHFE nickel added 1.25 percent to 121,750 yuan, aluminium gained 1.17 percent to 20,745 yuan, lead grew 1.04 percent to 16,990 yuan, copper rose 0.87 percent to 78,990 yuan and tin advanced 0.56 percent to 265,390 yuan.
“What China’s industrial ministry said has been encouraging for metals in general,” a Beijing-based metals analyst at a futures company said, adding, “Industrial sectors are all very relevant to metals.”
In addition to the downstream industries, the action plan will cover 10 key industries, including steel, nonferrous metals, petrochemicals and construction materials, the ministry noted.
“Metals in general have responded positively to the news, and whichever with more room for price growths will strengthen more remarkably,” a Shanghai-based metals analyst at a futures company said.
On Monday, LME metals fluctuated narrowly, after Friday’s surge, with zinc up 0.5 percent to $2,832.5 per ton. Earlier in the session, it touched $2,837, the highest since April 1.
LME aluminium rose 0.15 percent to $2,633.5, lead gained 0.13 percent to $33,490, nickel added 0.11 percent to $15,235, while lead eased 0.1 percent to $2,008. Copper traded flat at $9,776.5 after touching $9,777 on Friday, the highest since July 8.
