Zinc set to log weekly gains

Reuters

Melbourne

London zinc and nickel were set to log a second week of gains on Friday as traders bet that supply side constraints would lift prices already supported by expectations of easier central bank policy after Britain´s decision to leave the euro zone.

"Supply-side issues (are) likely to support metal markets today," said ANZ in a research note. 

A drop in global zinc mine supply this year has squeezed production of refined metal, helping LME zinc prices to jumped by 6.8 percent so far this month, adding to June´s near 10 percent gain.

Meanwhile, LME nickel has been boosted by concerns Philippines will intensify a crackdown on miners that do not meet environmental standards, potentially putting at risk supply from the worlds´ top exporter of nickel ore.  LME zinc traded at $2,250 a tonne on Friday, down 0.2 percent, amid light profit-taking after prices reached the highest since May 2015 on Thursday at $2,294.50 a tonne.