Zinc prices in London were set on Tuesday for the best monthly gain since 2006, driven by tightness of supply and funds buying into the base metals sector.
Three-month zinc on the London Metal Exchange (LME) advanced 0.7% to $2,965 per metric ton by 0258 GMT. The contract was up 21.5% on a monthly basis, on track for the best gain since October 2006.
The most-traded June zinc contract on the Shanghai Futures Exchange (SHFE) climbed 3.1% to 23,570 yuan ($3,254.40) a ton, having hit 23,715 yuan earlier in the session, the highest since December 2022. It was up 12.7% on a monthly basis.
“Traders report robust discussions amid concerns of tight (zinc concentrate) supplies. Available cargoes are relatively scarce as smelters ramp up production,” ANZ analysts said in a note.
LME copper rose 0.5% to $10,189.50 a ton, nickel advanced 0.5% to $19,250, tin climbed 1% to $32,900, while aluminium eased 0.2% to $2,585, and lead was almost unchanged at $2,229.50.
Weak demand drives zinc to its lowest since July 2020
SHFE copper rose 1.8% to 82,130 yuan a ton, lead edged up 0.3% at 17,305 yuan, tin advanced 1.4% to 263,290 yuan while aluminium eased 0.2% to 20,595 yuan and nickel edged down 0.2% at 143,300 yuan.
Base metals have received inflows of investment funds in recent weeks that seek to hedge against inflation and on bets of improving economic growth and long-term metal demand prospects from the renewable and electric vehicle sectors.
On a monthly basis, LME copper was up 14.8% and SHFE copper was up 13.2%, both set for the best month since February 2021.
Comments