The most-traded metals contracts on the Shanghai Futures Exchange rose on Tuesday, supported by signs of better demand from China as authorities vow to stabilise industrial growth and a major hydropower project in Tibet.

SHFE nickel gained 1.41% to 123,400 yuan ($17,205.3) per ton as of 0100 GMT. Earlier during the session, it hit 124,180 yuan, the highest since May 22.

Copper added 0.67% to 79,790 yuan, tin rose 0.61% to 267,200 yuan, zinc grew 0.26% to 22,845 yuan and lead advanced 0.15% to 16,960 yuan.

SHFE aluminium climbed 0.48% to 20,845 yuan after scaling a new peak since March 14 at 20,880 yuan earlier in the day.

“The Chinese government’s working plans to stabilise industrial growth and the launch of the giant Tibet hydropower plant are all positive signals to the metals market, with the prospect of the country’s metals demand boosting the sentiment,” a Beijing-based futures analyst at a futures company said.

However, it’s unclear how much actual demand will materialise, the analyst added.

A Shanghai-based futures analyst echoed the view, saying, “Amid all the uncertainties, such news sounds definite and positive, which may support the commodities futures market for a while.”

Meanwhile, China began building the world’s largest hydropower dam on the eastern rim of the Tibetan Plateau on July 19 at an estimated cost of at least $170 billion.

On the London Metals Exchange, the three-month copper contract added 0.07% to $9,866.5 a ton. Lead ebbed 0.35% to $2,007.5, nickel fell 0.28% to $15,480 and tin lost 0.08% to $33,785. Aliuminium and zinc traded flat at $2,644.5 and $2,836.5, respectively.

Outside China, investors remained cautious, focusing primarily on any new developments in trade talks between the U.S. and trade partners ahead of the August 1 deadline.

The U.S. dollar traded in a tight range after a brief fall in the last session.
Source: Reuters