Zinc prices rose in London on Thursday to their highest levels in three weeks on bets of a rally in coming weeks amid supply disruptions and a takeover fight at a major smelter.

Three-month zinc on the London Metal Exchange (LME) climbed as much as 1.8% to $3,199 per metric ton, the highest since Oct. 3.

The contract was trading 1.7% higher, as of 0352 GMT. The most-traded November zinc contract on the Shanghai Futures Exchange (SHFE) advanced 1.6% to 25,455 yuan ($3,578.66) a ton.

The LME zinc cash contract traded at a $58.25-a-ton premium to the three-month contract on Wednesday, a level unseen since September 2022 and indicating tightness in nearby supply.

Speculators have been building up positions in LME zinc futures and options, betting that technical tightness will translate into a rally in coming weeks.

“The zinc market has been rattled by a series of mine setbacks this year, dramatically tightening supplies of zinc ore and concentrate,” ANZ analysts said in a note.

Copper, aluminium, zinc higher on weak dollar

Operation at Australia’s Century zinc has been suspended until mid-November, parent firm Sibanye Stillwater said on Friday.

A trader said sentiment towards Korea Zinc, whose shares skyrocketed 29.9% to a record high amid a takeover battle, also boosted zinc prices.

“Fundamentally zinc is still good with the shortage of concentrates.

Metals can be a proxy to equities and vice versa,“ the trader said.

LME aluminium also hit its highest in three weeks, rising as much as 0.7% to $2,688 a ton, while SHFE aluminium climbed to the highest since Oct. 14 at 21,170 yuan.

Prices are supported by tight supplies of raw materials alumina and bauxite.

LME copper rose 0.6% to $9,576 a ton, tin climbed 1.1% to $31,250, while nickel eased 0.2% to $16,275 and lead eased 0.2% to $2,059.

SHFE copper edged down 0.3% to 76,700 yuan a ton, nickel fell 0.3% to 126,120 yuan, while lead was almost unchanged at 16,765 yuan and tin rose 1% to 256,000 yuan.