Zinc prices capped the biggest two-day gain in four weeks as a decline in inventories added to signs of tightening supplies amid mine closures.
Stockpiles monitored by the London Metal Exchange fell Wednesday to the lowest since December 2009. Zinc prices advanced in the past five weeks as China’s MMG Ltd. closes its Century mine, which is responsible for 4 percent of the world’s zinc output.
“The zinc market has structural problems, and is one of the metals that is better positioned fundamentally,” Eugen Weinberg, head of commodities research at Commerzbank AG in Frankfurt, said by telephone. “We will see higher prices.”
Zinc for delivery in three months advanced 1.3 percent to settle at $2,235 a metric ton at 5:50 p.m. in London. The metal has jumped 2.6 percent in two days, the most since March 23.
Tin extended gains after a 6.7 percent surge on Tuesday, the biggest rally in three years. Prices added 0.2 percent to $15,555 a ton. Lead rose, while aluminum fell and nickel settled unchanged.
Copper for immediate delivery was cheaper than the three-month contract for the first time since July, LME data showed on Tuesday at the close. The price structure, known as contango, signals more supply is available. The metal for delivery in three months retreated 0.6 percent to $5,911 a ton ($2.68 a pound).
In New York, copper futures for July delivery fell 1.1 percent to $2.677 a pound on the Comex in New York.