The most active zinc contract traded on the Shanghai Futures Exchange surged by 2.7 percent to 17,075 yuan ($2,800) a tonne on Tuesday, striking its most expensive since March 2012. Investors are slowly being drawn back into commodities, attracted by stronger global economic growth and more volatility within some sectors, typified by current investment flows out of grains into industrial metals.
"Value investors have been sniffing around for over a year because these prices have been on the back foot for about three years," said analyst Joel Crane of Morgan Stanley in Melbourne. "With prices moving and that showing up on people's screens, added to supply constraints, there may be some chasers at least for the short term."
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