| Zinc has surged nearly six per cent after top Chinese smelters agreed to cut output in 2016 by 500,000 tonnes, but gave up the bulk of gains on scepticism over whether shortages would kick in. Zinc, mainly used in galvanising steel, rebounded a day after sinking to its weakest point in six years, jumping on the back of the joint announcement by Chinese zinc producers to slash production.
"The scale of those cuts is quite significant. A surge of refined output from China has been weighing on the whole zinc market all year," said Caroline Bain, senior commodities economist at Capital Economics in London. Three-month zinc on the London Metal Exchange shot up 5.8 per cent to an intraday peak of $US1,620.50 a tonne, the biggest one-day gain in over a month...............................................Full Article: Source
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