Shanghai zinc finished up 3 percent at 19,795 yuan a tonne on Tuesday on expectations of tight supplies after Glencore said it had closed one of its mines in Australia. The most-traded copper contract on the Shanghai Futures Exchange closed 0.8 percent higher at $38,720 yuan a tonne. Copper traded near its highest in a month, supported by an improved demand outlook in China.
Analysts said a higher cost of production following a rally in coal prices was underpinning base metals. "This round of rally is driven by coal prices which has made expensive the cost of producing electricity," said Chris Wu, an analyst at CRU. "We are also seeing higher premiums for copper cathodes."
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