Zinc hits highest in nearly a month on supply fears

Zinc advanced for a fourth consecutive session on Wednesday, reaching its strongest level since September 30, Business Recorder reported. The London Metal Exchange’s three-month contract rose 0.7% to $3,868 a metric ton as traders weighed reduced mine supply and shortages beyond China. Falling mine production has pushed smelter treatment charges to record lows and prompted reductions in refined-metal output.

The cash zinc premium over the three-month contract widened to $106 a ton from $45 last week, while metal available in LME warehouses fell 14% over the same period. Although inventories overall have rebuilt, more owners have signalled plans to withdraw stock, and market participants said trading-house activity could add volatility. Elsewhere, aluminium ended 0.1% lower at $3,083.50 a ton, copper was little changed at $14,479, and nickel gained 0.7% to $15,730.