The price of zinc traded at a 10-year high of US$1.37 a pound on Wednesday.
The move has been attributed to the reduction in illegal production capacity in China, which has also provided support for the price of lead.
Lead’s three-month price has also been ticking up recently with news that UN Sanctions on NK could reduce China’s lead concentrates supply by 10%, Scotiabank said in a report.
Zinc is primarily used for galvanizing steel to protect against weather and corrosion. Zinc can also improve crop yields and crop quality.
Analysts have been bullish on the outlook for zinc because a number of major producers have recently run out of ore, leaving the market with a growing supply deficit and shrinking inventories.
Wednesday's move has also been attributed to the impact of Chinese infrastructure spending, which has also caused the price of steel to rally.
Shares of Canadian zinc mining giant
Teck Resources Ltd. (
TSX: T.TECK.B,
Forum) jumped 2.9% to $29.13 on Wednesday.
image: https://www.stockhouse.com/media/news-images/charts/zinc-price.png
