Zinc tops $3,700 with high energy prices to curtail European production further

The three-month zinc price on the London Metal Exchange reached a 14-year high of $3,750 per tonne on Friday October 15, with prices and premiums spiking amid concerns over supply in Europe and the United States.

Friday's price represents its highest level since 2007 and a 16.4% increase from the start of the week, with the contract closing at $3,222 per tonne on Monday.
"The threat of further production cuts by smelters at a time of strong demand, as government infrastructure spending feeds through, risks creating a very bullish price environment," Fastmarkets analyst James Moore said on Friday.
The price rally started after Nyrstar, one of Europe and the world's largest zinc producers, said on Wednesday it would cut production by up to 50% at its three European smelters.

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