Zinc extends gains, hovers at four-year high on regional tightness
XLB•Other base metals trade mixed
Three-month LME copper, which has also been hit by falling inventories and supply worries, dipped 0.4% to $14,291 a ton, having earlier touched its highest in six months at $14,437.
The most-traded copper contract on the Shanghai Futures Exchange rose 0.6% to 108,750 yuan ($16,182.55) a ton.
Among other metals, aluminium eased 0.7% to $3,216 a ton, lead dipped 0.1% to $1,903.50, nickel fell 0.6% to $16,940 and tin dropped 1.1% to $55,230.
Stronger dollar weighs on base metals
Zinc pared gains and other base metals went into the red on the back of a firmer dollar after U.S. inflation data was slightly stronger than expected, boosting the case for interest rate hikes.
A stronger dollar makes commodities priced in the U.S. currency more expensive for buyers using other currencies.
Regional inventory tightness supports prices
Zinc, mainly used to galvanise steel, has been hit by regional disparity, with inventories eroding in warehouses registered with the LME while piling up in China.
The localised shortages have sent the premium of cash LME zinc over the three-month futures to $132 a ton, up from zero in early July and the highest since last December.
