Copper, zinc hit multi-year highs, ignore risk-off

Amid tumbling global equities and oil prices, in the wake of North Korea tensions induced risk-aversion, the base metals stood resilient and stretch their rally, with zinc leading the pack.

Zinc futures on the London Metal Exchange (LME) rose to $ 3,180.50/ tonne, its highest level since October 2017, bolstered by a broad based rally seen in the ferrous and non-ferrous metals, as investors cheer robust demand from China’s steel sector.

Zinc prices were also driven by rising expectations of increase in the Chinese infrastructure spending, as stocks at Chinese ports fall for a fourth week.

LME copper furtures tracked the rally in zinc and nickel prices and leaped 1%, having earlier struck $6,593 a tonne, the highest since Nov. 2014. On Comex, copper futures climbed +1.20% to nearly three-year tops of $ 2.985/ pound.

Copper prices were also got a lift from the latest US CFTC report, which showed that Speculators in Comex copper boosted their record long position in the latest week.