Zinc Prices Cap Longest Rally Since February on Demand Outlook

Jun 10, 2014 2:21 pm ET

June 10 (Bloomberg) -- Zinc prices capped the longest rally since February amid speculation that strengthening economies from the U.S. to Europe will buoy metals demand.

U.S. job openings climbed to an almost seven-year high in April, while U.K. industrial production rose for a third month, separate reports showed today. The European Central Bank is taking unprecedented steps to combat deflation. Zinc prices climbed 3.7 this year.

“Zinc demand is especially geared to the economy,” analysts at BNP Paribas SA wrote in a report today. “Even a modest pickup in global economic growth that includes Europe should be highly beneficial, and this is precisely what we expect.”

On the London Metal Exchange, zinc for delivery in three months rose less than 0.1 percent to settle at $2,132 a metric ton, capping a fourth day of gains and the longest advance since Feb. 28.

Also on the LME, copper for delivery in three months rose 0.1 percent to $6,675 a ton ($3.03 a pound). Prices fell in the previous five sessions.

Copper futures for July delivery rose 0.3 percent to $3.053 a pound on the Comex in New York. In London, aluminum, nickel, lead and tin dropped.