Zinc climbs to highest in more than a year on shortage worries
SHANGHAI – Zinc extended its advance to the highest level in more than a year on concerns over a looming supply deficit.
The metal used to galvanize steel rose as much as 1.3% to $2 246 a metric ton on the London Metal Exchange, the highest since May last year, and traded at $2 241 by 3:03 p.m. Shanghai time. It added as much as 2.4% to 17 340 yuan ($2 589) on the Shanghai Futures Exchange.
Zinc has rallied 39% this year, outperforming other base metals, amid forecasts for a global shortage after supply cuts and mine closures. The metal may rise to $2 500 over the next six months as production trails demand, Goldman Sachs Group Inc. said last week. Stockpiles in warehouses tracked by the LME fell to 438 275 tons as of Monday, down more than a quarter from a peak of about 617 000 tons in September.
“Zinc has been resilient given ore supply tightness, which still hasn’t eased after the price rally, ” Wei Lai, an analyst with Cofco Futures Ltd., said by phone from Shanghai. “But with prices above 17 000 yuan, it might be time to be a bit cautious.”
Nickel fell from the highest close in almost nine months, even as the new Philippine administration shows signs of delivering on its vow to crack down on the mining industry, shuttering producers that don’t meet environmental standards. The country is the world’s biggest supplier of nickel ore to China.
The metal used in stainless steel declined 0.7% to $10,475 a ton after jumping as much as 1.1% earlier. On Monday, it gained 2.6% to $10,545, the highest close since Oct. 28. In Shanghai, prices climbed 1.3%, paring an earlier advance of 3.6%.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
At SMS group, we have made it our mission to create a carbon-neutral and sustainable metals industry.
VISIT SHOWROOMDeveloped to exceed the latest EN 15964 standards for police breathalysers proving that it will remain accurate and reliable for many years to come.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
