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Most Shanghai base metals rise on China data, possible LME ban on Russian metal

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BEIJING — Prices of most Shanghai base metals rose on Friday, as China data showed a surprise expansion in September factory activity and a possible ban on Russian metal delivered to the London Metal Exchange (LME) raised supply concerns.

The most-traded November copper contract on the Shanghai Futures Exchange climbed 0.5% to 61,070 yuan ($8,572.55) a tonne by 0200 GMT, while the three-month LME copper contract dipped 0.2% to $7,524.50 a tonne.

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China’s factory activity unexpectedly expanded in September, returning to growth after two consecutive months of contraction.

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The official manufacturing Purchasing Managers’ Index (PMI) edged up to 50.1 in September, from 49.4 in August, data from the National Bureau of Statistics showed.

The data lent some support to the near-term demand outlook in the world’s biggest metal consumer.

ShFE aluminum advanced 1.5% to 18,250 yuan, while nickel was up 1.9% at 183,880 yuan a tonne.

Prices of both metals in London rose late on Thursday, when the exchange said it was mulling the possibility of banning new Russian metal from the list of brands that can be delivered against the exchange’s contracts.

Western countries have imposed sanctions on Russian banks and wealthy individuals connected to President Vladimir Putin since Russia’s invasion of Ukraine, but so far there are no restrictions on buying Russian metal.

A ban on Russian metal could lead to shortages and further price surges at a time of rising inflation around the world.

ShFE zinc gained 0.9% to 23,885 yuan a tonne, while tin lost 1.8% to 177,300 yuan a tonne.

LME aluminum was up 0.8% at $2,215.50 a tonne and zinc rose 1.4% to $2,969 a tonne, while tin lost 0.3% to $20,460 a tonne.

For the top stories in metals and other news, click or ($1 = 7.1239 Chinese yuan) (Reporting by Siyi Liu and Dominique Patton; Editing by Subhranshu Sahu)

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