London zinc prices extended gains to a sixth straight session on Thursday, as worries about supply disruptions kept prices elevated.
Three-month zinc on the London Metal Exchange advanced 1.9% to $3,290 a tonne by 0319 GMT, and the most-traded October zinc contract on the Shanghai Futures Exchange rose 0.5% to 24,930 yuan ($3,578.81) a tonne.
About half of the European Union’s aluminium and zinc production capacity “has already been forced offline due to the power crisis”, industry association Eurometaux said.
LME aluminium rose 2.1% to $2,317 a tonne, tin gained 1.5% to $21,500 a tonne and copper advanced 0.7% to $7,859 a tonne.
Zinc hits two-month peak as Nyrstar shutdown stokes supply fears
ShFE aluminium increased 1.3% to 18,905 yuan a tonne, tin jumped 2.6% to 179,000 yuan a tonne, copper was up 0.3% to 62,700 yuan a tonne and nickel advanced 0.9% to 191,500 yuan a tonne.
Prospects of better demand from the real estate sector also lifted sentiment, after property giant China Evergrande Group announced it would restart frozen construction projects, and on hopes of more supportive policies in China.
The property sector consumes a vast amount of metals. Producers of energy-intensive aluminium in Yunnan province will continue operating with 10% less power, with no sign of when restrictions implemented this week will be lifted, officials at two producers said.
But gains in metals prices were capped by a firm dollar, fuelled by prospects of a solid interest rate increase after US consumer prices unexpectedly rose in August.
Comments
Comments are closed.