Base metals increased, led by zinc that rose to the highest level since 2007 after European smelters became the recent casualties in a global energy crisis that is disrupting supply.
- Zinc increased nearly 6.9% on the London Metal Exchange, and a measure of six industrial metals closed on a record-high. Aluminum, one of the most energy-intensive commodities, rose to the highest since 2008.
- Copper recovered to close at the $10,000-a-ton mark, and spreads are signaling a sharply tighter market. Spot copper contracts are now trading at the highest premium over futures in 10 years as global inventories contracted.
- The reduction in metal supply is spreading from China to Europe as power shortage is driving up the costs for electricity and natural gas, threatening an increase in prices from increasing commodity prices.
The energy crisis has an expansive impact on supply, but issues about demand are increasing fast as manufacturers suffer a simultaneous increase in raw material prices across the board.
Copper up +2.98%