Zinc touches decade high
Sunday, 28 January 2018
BELFAST, Jan 27 (Reuters): Zinc touched a fresh a 10-year high on Friday due to a weaker dollar and as inventories slipped to their lowest levels since 2008, indicating tight supply.
Benchmark LME zinc ended 0.4 per cent higher at $3,478 per tonne, after touching its highest since 2008 at $3,481.85. It recorded its seventh straight week of gains, the longest weekly winning streak since early 2016.
ING commodities strategist Oliver Nugent said there was a tightness in supply of zinc, boosted by a rise in cancelled warrants - metal earmarked for delivery - in the LME approved warehouses.
"We have had so much support this week from the dollar, it's all eyes on the dollar," he said, referring to the weaker US currency.
Fears over potential supply shortages and another drop in on-warrant inventories available to the market are helping to support the price of zinc.
ZINC PRICES: Zinc, used primarily to galvanise steel, is up about 14 per cent since a December low. It rose 29 percent in 2017.