Zinc Rally Gains Momentum
Zinc futurestrading around $3,200 a tonne, recovering further from an over one-year low of $2,800 reached in late September, amid growing concerns about tight supplies after the London Metal Exchange signaled that it would restrict supplies from Russia.
Markets were already tight as European smelters have been cutting back production amid soaring power prices.
According to Europe’s metals trade association Eurometaux, half of Europe’s aluminum and zinc production capacity has already been forced offline as the continent’s energy crisis threatens to hobble heavy industries.
Still, Zinc is down almost 30% since its April peak amid worries of a recession-induced demand downturn.