Zinc prices extended their gains, reaching their highest level in more than three-and-a-half years on continuing supply concerns after Nyrstar NV said it would curb production at three European smelters due to high energy costs.
Nyrstar, the world’s second-largest zinc producer, said yesterday it would cut output further at its three European smelters, reducing production by up to 50%, in response to higher energy prices.
Benchmark zinc on the London Metal Exchange rose 3.5% to US$3,521.50 a tonne in mid-morning trade, the highest price since February 2018.
Nyrstar’s announcement added to zinc supply woes as Chinese smelters have also reduced output in recent months.