The zinc price from London Metal Exchange (LME) surged by US$100/ton yesterday (March 12th), rebounding to US$2,838/ton, which was the highest since the end of June last year.

According to market participants, the sharp increase in zinc price was due to a significant drop in zinc stocks and supply shortages. In addition, the demand for zinc in China market was expected to be stronger as the development of trade negotiation between China and the US seemed optimistic. Therefore, zinc price was forecasted to keep stable in the near future.

LME’s market inventory of zinc slid by 425 tons yesterday, reaching 59,450 tons, which hit a new low in the recent 10 years.