HANOI- 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 percent to $3,199 per metric ton, the highest since Oct. 3. The contract was trading 1.7 percent higher, as of 0352 GMT.
The most-traded November zinc contract on the Shanghai Futures Exchange (SHFE) advanced 1.6 percent 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.
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 percent to a record high amid a takeover battle, also boosted zinc prices.
