Shanghai aluminium hits two-year high, logs 7th weekly gain

Prices of aluminium in Shanghai rose to their highest in nearly two years on Friday, as funds pumped money into commodities including metals to hedge against rising inflation.

The most-traded June aluminium contract on the Shanghai Futures Exchange (SHFE) closed up 1.6% at 20,735 yuan ($2,865.06) a metric ton.

The contract hit 20,790 yuan earlier in the session, its highest since April 2022, and logged a seventh straight weekly gain.

Three-month aluminium on the London Metal Exchange (LME) advanced 1.6% to $2,493.50 a ton as of 0707 GMT and was set for a fifth straight weekly gain.

U.S. consumer prices increased more than expected in March, raising the need for funds to get hold of hard assets.

"Inflation is running hot now, hence why funds are getting hold of hard assets, like precious and base metals," said a trader.

LME zinc climbed 2.4% to $2,823.50 a ton, the highest since April last year.

SHFE zinc climbed for a ninth straight day, closing up 1.8% at 23,045 yuan. The contract rose 7.5% this week, its best since October 2021.

LME copper rose 1.7% to $9,499.50 a ton, lead increased 1.4% to $2,173, and nickel advanced 1.2% to $18,020.

SHFE copper was up 0.9% at 76,910 yuan a ton, lead advanced 0.2% to 16,765 yuan, while nickel fell 1.2% to 138,250 yuan.

Tin prices were supported by uncertainty over supply from major producer Myanmar, where tin mining in a major producing region remains suspended.

LME tin rose 13.2% on a weekly basis at $32,065, set for its best week since January 2023. SHFE tin gained 9.2% this week, its best since April 2023.