Nov 16 (Reuters) - Industrial metals rose on Monday, with
copper prices hitting 29-month highs and Shanghai aluminium
scaling a three-year peak, on optimism around demand in top
metals consumer China.
Three-month copper on the London Metal Exchange
jumped as much as 2.8% to $7,179 a tonne, the strongest since
June 14, 2018.
The most-traded copper contract on the Shanghai Futures
Exchange gained as much as 3.5% to 53,800 yuan
($8,173.31) a tonne, the highest since June 15, 2018.
China's industrial output rose at a faster-than-expected
pace in October, mirroring strong metals consumption in the
world's second-largest economy.
Copper and aluminium were also supported by last week's data
showing declines in inventories in warehouses monitored by the
Shanghai exchange, analysts said.
London aluminium rose 0.7% to $1,945 a tonne, its
strongest since March 20, 2019. Shanghai aluminium
jumped 0.9% to a three-year high of 15,585 yuan a tonne.
"The relative strength between the two markets saw the
aluminium arbitrage briefly turn positive for China to import,"
commodity strategists at ING said in a note.
"This could suggest that the strong imports we have seen
since (the second quarter) may repeat themselves in November if
traders have seized this opportunity."
* China's aluminium output in October rose 9.7% from a year
earlier to a record high.
* Chile's Candelaria copper mine offered an improved
contract deal to one of two unions on strike at the deposit in a
bid to re-start production.
* In London, nickel rose 1.6% to $16,150 a tonne,
zinc jumped 1.8% to $2,676.50, while lead
gained 1.1% to $1,914 and tin advanced 1.3% to $18,630.
* In Shanghai, nickel climbed 1.4% by noon break,
zinc added 1.5%, lead gained 0.2% and tin
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(Reporting by Enrico Dela Cruz in Manila; Editing by Subhranshu