Shanghai aluminium futures rose on Monday, buoyed by a price rally in key raw material alumina and fast-growing demand from the new energy sector.

The most-traded July aluminium contract on the Shanghai Futures Exchange gained 0.1% to 20,910 yuan ($2,886.41) per metric ton in day-time trade, not far from a more than two-year high of 21,610 yuan reached last week.

Prices of the light metal rallied on strong market fundamentals and funds buying this year.

The London Metal Exchange is closed on Monday for a public holiday.

The market was supported by higher raw material costs.

The most-traded SHFE alumina contract jumped 8.3% last week and was down 0.4% at 4,062 yuan per ton on Monday.

The surge came with investors' bets on looming shortages of alumina amid slow domestic production and news of 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.

China's industrial profits swung back into positive territory in April while growth over the first four months held steady, official data showed, suggesting policies to bolster the economy were starting to take effect.

Aluminium stocks monitored by SHFE slid to 211,698 tons on Friday, down 8.7% from a month earlier.

However, hiked volume from Russia and some users held from purchasing after recent price gains could send stocks higher in the following weeks, potentially weigh down prices, according to analysts.

SHFE copper shed 0.4% to 83,530 yuan a ton, tin slipped 0.2% to 272,900 yuan, while nickel added 0.5% to 152,930, zinc gained 0.3% at 24,690 yuan, and lead climbed 0.4% to 18,550 yuan.

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DATA/EVENTS (GMT)

0800 Germany Ifo Business Climate New May

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($1 = 7.2443 Chinese yuan renminbi)

(Reporting by Siyi Liu and Colleen Howe; Editing by Rashmi Aich and Sohini Goswami)