(Updates prices, adds ShFE stocks details)
HANOI, Feb 5 (Reuters) - Most industrial metals rose on Friday as appetite for riskier assets returned following a fading GameStop-style frenzy, although a stronger dollar limited gains.
LME three-month copper rose 0.7% to $7,875 a tonne by 0809 GMT, while the most-traded March copper contract on the Shanghai Futures Exchange closed 1% higher at 58,210 yuan ($8,993.71) a tonne.
LME aluminium rose 0.3% to $1,999.50 a tonne, nickel advanced 1.4% to $17,890 a tonne and zinc increased 1.2% to $2,659 a tonne.
ShFE aluminium rose 2.5% to 15,555 yuan a tonne, nickel climbed 2.1% to 132,850 yuan a tonne, while lead added 2% to 15,275 yuan a tonne.
“The meme stocks are gone .. washed down the drain so no more forced liquidation by funds to pay for their losses on those,” said a metals trader, referring to the trading frenzy involving GameStop Corp and silver.
“So everything can now go up, but commodities’ upside is capped due to strong USD,” the Singapore-based trader said.
The dollar, which was heading for its best weekly gain in three months, made greenback-priced metals on the London Metal Exchange more expensive for holders of other currencies.
Markets in China, the world’s biggest metals user, will close from Feb. 11-17 for Lunar New Year holidays, potentially slowing demand for industrial metals.
* ShFE zinc stocks ZN-STX-SGH jumped 34.9% week-on-week to 60,361 tonnes, while ShFE tin inventories SSN-TOTAL-W rose 18.4% and ShFE aluminium stockpiles AL-STX-SGH increased 10.2% within the same period.
* Cash tin on the LME was at a $990 a tonne premium over the three-month contract CMSN0-3, indicating tight nearby supplies. LME tin inventories MSNSTX-TOTAL fell to 810 tonnes, hovering around the lowest level since May 2019.
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$1 = 6.4723 yuan Reporting by Mai Nguyen; Editing by Rashmi Aich, Amy Caren Daniel and Barbara Lewis