Zinc continuing up trend London zinc rallied to its highest in...

Zinc continuing up trend

London zinc rallied to its highest in 15 months on Friday as fresh shutdowns in China's steel sector added to mine supply concerns to ignite a short-covering rally.
China plans to cut steel production by 2.91 million tonnes this year in inner Mongolia, an industry group reported on its website on Friday.
As China steel mills shutter, steel prices lift, meaning remaining mills can pay more for ingredients such as zinc.
The news pushed investors to cover short positions in a market already beset by tight supply.
"Zinc has definitely been the outperformer. It's coming from supply constraints with the closure last year of big mines," said strategist Vivek Dhar of Commonwealth Bank Australia.
"Stronger than expected steel output in China this year has also helped boost zinc demand and prices."