Dec 22 (Reuters) -
Metals prices rose on Friday, with Shanghai-listed aluminium and zinc contracts reaching their November-high levels on expectations of Chinese rate cuts and shipping delay fears amid attacks in the Red Sea.
The February aluminium contract on the Shanghai Futures Exchange (SHFE) leaped 1.6% to 19,245 yuan ($2,692.29) a metric ton, the highest since Nov. 7, and zinc hit a one-month high at 21,325 yuan.
China's Big Five banks announced they would cut interest rates on some deposits from Friday, with market watchers widely interpreting the move as an attempt to pave the way for further reductions in policy rates to aid the economy.
Meanwhile, some metals shipping routes were likely affected as maritime carriers avoided the Red Sea due to vessel attacks out in support of Palestinians, causing trade disruptions through the Suez Canal, which handles about 12% of global trade.
"The Middle East is a big shipper of refined aluminium. Shipments are likely to get delayed as the vessels usually sail down from the Suez Canal to the Persian gulf to pick up the metals shipments," said a metals trader.
"Premiums in the Middle East for zinc should rise as the region is a net importer," the trader added.
SHFE copper hit its highest since Sept. 15 of 69,290 yuan a ton, tin jumped to a five-week high of 213,730 yuan, nickel increased 1.1% to 131,730 yuan, while lead was flat at 15,655 yuan.
Three-month copper on the London Metal Exchange rose 0.1% to $8,605 per metric ton by 0559 GMT, aluminium increased 0.7% to $2,258.50, nickel advanced 0.2% to $16,920, zinc climbed 0.8% to $2,567, lead rose 0.2% to $2,070 and tin was up 0.6% at $25,295.
For the top stories in metals and other news, click or ($1 = 7.1482 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Rashmi Aich and Varun H K)
