Zinc prices in London were set on Tuesday for the best monthly gain since 2006, driven by tightness of supply and funds buying into the base metals sector.
Three-month zinc on the London Metal Exchange (LME) advanced 0.7 percent to $2,965 per metric ton. The contract was up 21.5 percent on a monthly basis, on track for the best gain since October 2006.
The most-traded June zinc contract on the Shanghai Futures Exchange (SHFE) climbed 3.1 percent to 23,570 yuan ($3,254.40) a ton, having hit 23,715 yuan earlier in the session, the highest since December 2022. It was up 12.7 percent on a monthly basis.
“Traders report robust discussions amid concerns of tight (zinc concentrate) supplies.
Available cargoes are relatively scarce as smelters ramp up production,” ANZ analysts said in a note.
LME copper rose 0.5 percent to $10,189.50 a ton, nickel advanced 0.5 percent to $19,250, tin climbed 1 percent to $32,900, while aluminum eased 0.2 percent to $2,585, and lead was almost unchanged at $2,229.50.
SHFE copper rose 1.8 percent to 82,130 yuan a ton, lead edged up 0.3 percent at 17,305 yuan, tin advanced 1.4 percent to 263,290 yuan while aluminum eased 0.2 percent to 20,595 yuan and nickel edged down 0.2 percent at 143,300 yuan.
