BEIJING, May 27 (Reuters) - Prices of aluminium futures in Shanghai gained on Monday, supported by a strong price rally in key raw material alumina and robust demand.
The most-traded July aluminium contract on the Shanghai Futures Exchange was up 0.6% to 21,015 yuan ($2,900.58) per metric ton in early trading.
Prices of the light metal rallied on strong market fundamentals and funds buying this year, hitting more than a two-year high of 21,610 yuan last week.
The London Metal Exchange is closed on Monday for a bank holiday.
Monday's gains were partly supported by higher raw material costs.
The most-traded SHFE alumina contract jumped 8.3% last week and was up 0.3% at 4,088 yuan per ton early on Monday.
The rally was boosted by higher demand as aluminium producers ramped up production.
Prices were further supported by a shortage of the metal in the domestic market amid overseas supply disruptions, including Rio Tinto declaring force majeure on Queensland alumina exports, further supported prices.
Also aiding prices was firm demand for aluminium, especially the rapid rise in consumption from solar and electric vehicles sectors, analysts said.
Piled-up inventories in China's market along with hiked volume from Russia could also potentially weigh down prices, according to analysts.
SHFE copper little moved at 83,880 yuan a ton, nickel added 0.8% to 153,310, zinc gained 0.6% at 24,755 yuan, lead rose 0.8% to 18,615 yuan, and tin increased 0.2% to 273,850 yuan.
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($1 = 7.2451 Chinese yuan renminbi) (Reporting by Siyi Liu and Colleen Howe; Editing by Rashmi Aich and Sohini Goswami)
