2014.06.2702:03:48UTC+00Low supplies increase value of zinc

Following the situation of other metal commodities, diminishing inventories of zinc have pushed it to its highest value in almost sixteen months.  

Coupled with increased global demand centered in the United States, it has caused futures contract for a metric ton of the metal to increase by 0.4% to $2,190.50 in late afternoon trading on the London Metal Exchange. Its prices have already climbed by 10% this quarter capped by  achieving its highest value since February 2013 of $2,198 earlier this week.

The rise in demand for zinc comes from its wide use in a variety of fields including manufacturing and housing. Coincidentally, sales of new homes went to a monthly gain of a two decade high in the US along with increased activity in the country’s factories in the form of equipment orders which contributed to the metal’s appreciation.

At the same time, the LME has reported that stockpiles of zinc in their monitored warehouses continued to decline, marking the fourth consecutive session it has done so. Supply levels are currently on its lowest levels in three and a half years and has fallen 57% so far this year.

Another significant market winner was copper whose futures for September climbed to $6,955 per ton signifying a 0.6% jump. The price for each pound of the commodity likewise increased by 0.2% in New York’s Comex to reach a value of $3.172 and record its longest rising streak in nearly a decade of ten straight trading days.

Other metals that fell on the London market include Aluminum and tin, while lead and nickel rose.