CAPITAL MARKETS

Zinc leads base metal frenzy

Base metals rallied strongly overnight, with zinc and lead leading the charge

Kristie Batten
Zinc leads base metal frenzy

Lead and zinc each jumped by well over 5% on the London Metal Exchange.

Zinc marched through US$3100 to reach a new 10-year high.

The metal is now up by 21.5% so far this year after performing strongly in 2016.

After three consecutive falls, nickel bounced back with a 4% jump to $10,706.50/t.

Aluminium added another 2.2% to $2100/t, a more than four-year high. The price is up by nearly 10.8% this month alone due to a Chinese crackdown on illegal plants.

Copper gained 2.4% to $6496.50/t, its highest point since late 2014.

“Earlier this year, a lot of the rally was supply related, but recently we’ve seen demand starting to support as well,” Natixis analyst Bernard Dahdah told Bloomberg from London.

The big London miners performed strongly overnight, with Glencore gaining 4.2%.

Meanwhile, gold was back just below $1290 an ounce as the US dollar weakened.

The Australian dollar surged back over 79c, but the local spot gold price was higher at A$1620.10/oz.

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