Zinc hits 2-1/2 month peak

LONDON: Zinc prices hit their highest in 2-1/2 months on Friday as investors piled into risky assets after US President Trump calmed international tensions by affirming the "one-China" policy and promised big tax cuts.
Trade data from China, the world's biggest metals consumer, also provided support, but copper pulled back from highs after Indonesia issued new mining permits to Freeport McMoRan Inc , opening the way for a resumption of exports.
Benchmark zinc on the London Metal Exchange surged to $2,908.50, the highest since Nov. 28, and traded up 2.5 percent to $2,901 a tonne in official activity. "Trump seems to have come round to the one-China view and he wants to have a good business relationship, together with his promises of 'phenomenal' tax cuts, which really galvanised stock markets yesterday," Robin Bhar, head of metals research at Societe Generale in London, said. European shares rose to within striking distance of their highest levels in more than a year on Friday while the dollar was also buoyant in response to upbeat Chinese trade data and hopes of business-friendly tax cuts in the United States.
Zinc, mainly used in galvanised steel, was also boosted after Chinese iron ore futures jumped nearly 8 percent on Friday to their highest in three years and Chinese steel rebar futures also gained.

February 12, 2017 THE NEWS INTERNATIONAL