Zinc rises to 15-month high

On the London Stock Exchange, zinc hit its highest level in 15 months on Friday as new shutdowns in China's metallurgy sector added supply concerns.

China plans to cut steel production by 2.91 million tonnes this year, according to state media reports. In China, steel mills have raised steel prices, meaning the remaining factories can pay more for ingredients such as zinc.

The news pushed investors to close short in a market already plagued by limited supply. Zinc is definitely on the rise from supply constraints with the closure of large mines last year. Changes in steel production in China this year also boosted zinc demand and prices.

On the LME, zinc prices have rallied to their highest since May 2015 at $ 2,327.50 a tonne, reflecting an annual increase of 44 percent. The volumes were huge, with over 8500 lots. In Shanghai, zinc rose more than 3 percent to close to 2.8 percent at 17,940 yuan a tonne. Also stronger news for metals demand came from the United States, where new orders for industrial capital goods rose for the second straight month in July.