Zinc price touched a near 14-year high in Shanghai while in London it jumped the strongest in over three-and-a-half years after Nyrstar said it will cut production by up to 50% at its three European zinc smelters due to the soaring price of electricity.
Click here for an interactive chart of zinc prices
“The cost burden of carbon emitted by the electricity sector which is passed on to industrial and domestic customers, mean it is no longer economically feasible to operate the plants at full capacity,” Nyrstar said.
“Indirect cost compensation for energy-intensive producers to protect their competitiveness versus non-EU producers varies by European country and this puts Nyrstar’s Budel, Balen and Auby plants at a competitive disadvantage, compounding the impact of extreme energy prices.”
Today Jerome Powell and the Federal Reserve shocked markets by forecasting two rate hikes for 2023. The real "shock" would be if he actually delivered on those words.