Metals prices rise on US economy strength

Aluminium prices have hit a 10 month high and other metals also rose as the improving US economy boosts demand.

Aluminum prices hit a nearly 10 month high as the improving US economy pointed to strong metal demand.

Prices for most industrial metals have soared since Friday, when US jobs data for the month of May came in better than expected.

Many investors and analysts expect the economic recovery in the world's largest economy to support prices, even as demand grows more slowly in China, the world's top metal consumer.

On Monday, aluminum for delivery in three months ended 1.7 per cent higher at $US1,911 per metric ton on the London Metal Exchange, the highest price since August.

Zinc prices also rose 1.3 per cent to $US2,131 a ton, while nickel prices inched 0.2 per cent higher to $US18,905 per ton.

Metal prices have further been helped by supply constraints.

Indonesia banned exports of raw ore in January, curbing global supplies of nickel, aluminum, tin and other metals.

Copper missed out on Monday's rally, falling on reports that China was probing suspected fraud involving metal stockpiles in the port of Qingdao. Copper for July delivery ended down 0.3 per cent at $US3.0435 a pound on the Comex division of the New York Mercantile Exchange.

Copper prices have continued to fall in recent days after Chinese authorities began investigating whether companies used the same copper, aluminum and iron ore stocks as collateral for obtaining multiple loans.

Some weaker than expected Chinese import data also weighed on market sentiment Monday, deepening concerns about the pace of economic growth and demand for metals in the world's second largest economy.

Imports of unwrought copper fell 15 per cent in May from the previous month.


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