BEIJING, Aug 27 (Reuters) - Shanghai base metal prices
mostly 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 2.2 percent to 21,385 yuan
($3,111.00) a tonne, its highest since Aug. 10, and was up 1.8
percent by the mid-session interval. Three-month LME zinc
closed up 2.7 percent on Friday.
* COPPER: ShFE copper was trading higher for a
second day, rising 0.7 percent to 48,800 yuan a tonne.
* LEAD, NICKEL: Zinc's sister metal lead added as
much as 1.5 percent in Shanghai, touching its highest since July
30. Nickel was the lone laggard, falling as much as 1.7
percent to 107,910 yuan a tonne.
* ALUMINIUM: ShFE aluminium gained as much as 0.9
percent to 14,865 yuan a tonne, its highest since Aug. 9, as
Chinese smelters' costs rise. It then pared gains to 0.2
percent.
* 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.
* 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.
