Shanghai zinc futures rose for the eighth consecutive session on Tuesday, on falling inventory and worry about supply.

The most-traded February zinc contract on the Shanghai Futures Exchange closed up 0.5% at 21,440 yuan ($3,000.32) per metric ton. Earlier in the session, the contract hit 21,480 yuan, the highest since Nov. 17.

“Due to low profits and many companies’ own problems, domestic production may be reduced in early 2024,” said Huatai Futures analysts in a report.

“Coupled with the general rise in shipping costs, this will push up bulk costs and hinder logistics efficiency, making supply more fragile. Short-term zinc prices will maintain a strong pattern,” they said.

Zinc stockpiles in SHFE warehouses were last at 25,440 tons, down nearly 80% from this year’s high hit in March.

Shanghai aluminium rises for ninth session amid supply concerns

SHFE aluminium was up 0.1% at 19,235 yuan a ton.

A fuel shortage in major bauxite producer Guinea heightened a bauxite tightness in China, which raised concerns of an alumina capacity cut that might ultimately translate to lower aluminium supply.

Lower inventories in China, the world’s top aluminium consumer, also helped raise prices.

Aluminium inventories in China, assessed by SMM, dropped to 443,000 tons, the lowest since January 2017. However, alumina futures prices retreated on Tuesday after hitting a record high in the previous session.

The government of Guinea said supplies of fuel at gas stations are expected to improve significantly.

SHFE copper advanced 0.4% to 69,330 yuan, nickel eased 0.4% to 129,140 yuan, lead rose 0.2% to 15,745 yuan, and tin edged up 0.3% at 208,780 yuan.

The London Metal Exchange is closed for the Christmas holiday and will reopen on Wednesday.