LONDON: Zinc prices touched a two-month high on Wednesday on persistent worries about supply while other industrial metals were boosted by easing concerns about renewed pandemic restrictions.
Three-month zinc on the London Metal Exchange had gained 3.3% to $3,539 a tonne by 1715 GMT, the highest since Oct. 21.
“Market players are looking at what the UK is doing and the fact that we haven’t seen any further COVID restrictions in the UK is a big relief,” said Naeem Aslam, chief market analyst at Ava Trade.
“Also, we could see supply bottlenecks still being there in the first quarter of next year. That has made some traders making some bigger bets on that and also pushing prices higher.”
High power prices have forced some zinc smelters to suspend operations and some analysts believe the situation will continue to be difficult during the winter.
Aluminium, which has also been hit by production stoppages due to power issues, climbed 2.6% on the LME to $2,825 a tonne after touching $2,849, the highest since Oct. 26.
The European Union said it will place extra tariffs on aluminium foil coming from China after the European Commission found that producers there benefited from excessive and unfair subsidies.
LME copper rose 0.7% to $9,605 a tonne, nickel advanced 1.7% to $19,940, lead added 0.9% to $2,316.50 and tin edged up 0.1% to $38,725.
Peruvian community protesters who have blocked a key transport road used by MMG Ltd’s Las Bambas copper mine will clear the route until at least Dec. 30 following talks with the government, an adviser to the group told Reuters on Wednesday.
Metals markets also got support after a senior state planning official said top metals consumer China has the confidence, condition, and ability to keep economic growth at a reasonable level, the Xinhua News Agency reported.
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