Zinc prices rose to their highest point in nearly a decade today after Chinese demand pushed the metal higher.
Rising demand for infrastructure in China, the world's top commodity buyer, has spurred a rally in steel prices that is now pushing steelmaking materials higher, including zinc, which is used for galvanising steel.
"There [was] a fair level of scepticism at the start of the year when China's infrastructure projects were announced but we're seeing much better-than-expected growth in fixed asset investment," said Daniel Hynes, analyst at ANZ in Sydney, according to Reuters. "That resetting of expectations is resulting in that much more positivity to the sector."
London zinc topped $2,994 a tonne today, taking prices to their highest since October 2007.
Although it still remains high, China's strong economic growth showed signs of cooling in July with a rise in lending costs and a slowdown in the property market.