Zinc increases on China supply worries
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Zinc rose 1 per cent in London on Wednesday, with the market dominated by concerns about the impact on supply of a recent earthquake in China, while tin matched its record high on supply worries. News of zinc supply disruptions trickled out of China's Sichuan province, hit by an earthquake on Monday. Zinc for delivery in three months on the London Metal Exchange was quoted at $2,345/2,365 per tonne at 0952 GMT, up $25 or 1.1 per cent from Tuesday's close. ''On zinc, there could be an impact on the production side due to the earthquake,'' said Lehman Brothers analyst Mr Michael Widmer. ''The market's focus isn't on copper, it's on the other metals after the earthquake.'' Zinc has risen around $150 since the start of the week, but is still down close to 5 per cent on the year.
Lead declines
Beijing has also ordered a halt to mining activity in Sichuan on safety grounds. The area produced 80,000-90,000 tonnes of lead in concentrate last year, state research group Antaike said. Lead was down $50 at $2,265/2,285 per tonne. Supply risks due to labour unrest in Peru and Chile underpinned the copper market, but investors were concerned by the continued absence of Chinese buyers. The metal, widely used in the construction and power sectors, was down 1 per cent at $8,160/8,170 per tonne by 0954 GMT. Tin equalled the contract high of $25,350 it touched in the previous session, on continuing worries about supply from major producers Indonesia and China. It was quoted at $25,200/25,300 per tonne at 1010 GMT, up $50. Aluminium was down $20 at $2,925/2,935 per tonne, while nickel was down $400 at $26,650/26,750 per tonne.
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Source : Business Line |
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