Zinc hits 14-year high
Thursday, October 14th, 2021
Zinc prices climbed to their highest level in 14 years on Thursday on supply concerns after producer Nyrstar announced a plan to cut its output due to high power prices in Europe.
The most-traded November zinc contract on the Shanghai Futures Exchange surged as much as 8% to 25 700 yuan ($3 991.86) a tonne, its highest since October 2007.
Three-month zinc on the London Metal Exchange jumped as much as 6.9% to $3 637.50 a tonne, a level unseen since July 2007.
Nyrstar said it would cut production by up to 50% at its three European zinc smelters from Wednesday.
Electricity prices have reached record highs in recent weeks, driven by power shortages in Asia and Europe, with China’s crisis expected to last through to the end of the year and crimp growth in the world’s second-largest economy.