Copper rises as zinc hits highs after Nyrstar production cut

Zinc hit a nearly 14-year high in Shanghai, while the London contract hit peaks of more than three and a half years after Belgian firm Nyrstar said it will cut production by as much as 50% at its three European metal smelters. due to the rise in electricity prices.

At 0930 GMT, benchmark zinc on the London Metal Exchange (LME) was up 3.3% at US $ 3,372.50 a ton, the highest since March 2018.

The November zinc contract on the Shanghai Futures Exchange, the most traded, closed 1.5% higher at 24,000 yuan (US $ 3,721.68) a ton, its highest level since November 2007.

Three-month copper on the LME was up 1% at $ 9,563 a tonne.

Electricity prices have risen to record levels in recent weeks, fueled by power shortages in Asia and Europe, and China’s crisis is expected to last until the end of the year and slow the growth of the world’s second-largest economy. world.

One analyst cautioned, however, that rising energy prices are likely to affect industrial production as well, reducing demand for metals.

“We must not forget that not only primary metal producers are being affected by the energy crisis, but also metal manufacturers, those further down the value chain.”Said Daniel Briesemann of Commerzbank.

Aluminum was up 1.3% on the LME at US $ 3,106.50 a tonne after reaching its highest level since July 2008 at US $ 3,118.50.