Zinc Prices Hit Highest Level in More than a Month

That happened on Wednesday, November 8, after a fire at a major Russian mining operation prompted supply concerns following recent mine closures.

3-mo zinc futures on the London Metal Exchange (LME) were up 1.8% at $2,613.50 a tonne yesterday, posting their highest level since October 2.

A fire at Russia's Ozerny mining and processing plant was successfully extinguished, however, as the company is assessing the possible impact of full operations at the country's largest zinc mine next year.

Morgan Stanley (MS) wrote earlier this month that the Ozernoye minefield is expected to produce 350,000 tons of zinc per year. On top of that, Nyrstar said last week it plans to temporarily close two zinc mines in the U.S. in late November due to weaker pricing and the impact of inflation, the latest move by a producer to shutter zinc operations in recent months. LME zinc stocks have more than halved since early September, exacerbating supply concerns.