- Metal leads advance in industrial metals as oil rallies
- Mining stocks increase, led by gains in Anglo American
Zinc rallied with other industrial metals as inventories in warehouses tracked by the London Metal Exchange declined the most in more than eight years, signaling a potential improvement in demand.
Zinc for delivery in three months climbed 4.1 percent to settle at $1,833 a metric ton at 5:50 p.m. in London. Stockpiles tracked by the LME shrunk for a 24th session, falling 1.4 percent, the most since September 2007. Inventories are the lowest in almost seven years. Deliveries from Port Klang, Malaysia, drove the stockpiles lower.
“Zinc is the one market where we’re really worried about supply-side growth,” Mike Dragosits, a senior commodity strategist at TD Securities in Toronto, said in a telephone interview. “Perhaps for zinc, we’re having to draw into LME stockpiles as a source of supply for the physical demand. Maybe that’s just another indication, helping to boost zinc prices more positively than some of the other metals.”
Other metals advanced, with copper climbing 2.2 percent to $4,766.50 a ton. Metals were helped by gains in crude oil to above $40 a barrel.
Anglo American Plc was the biggest gainer among world mining stocks, rising 9.2 percent, as its De Beers subsidiary increased diamond sales at its third offering this year in a sign of recovering demand for rough gems after a slump last year.