Zinc may rise to a 5-year high

According to Japan's largest producer Mitsui Mining & Smelting Co, zinc prices could advance to $ 2,500 a tonne in March due to a "super tight supply" of ore after the companies cut output. Even if Glencore halted the production cut, supply would continue to lag behind demand, despite the "feeling of shortage eased a little."

Goldman Sachs also predicts zinc will reach $ 2,500 in three months, while Citigroup says it will average $ 2,445 in 2017. The metal used to galvanize steel has already surged stronger than its London Metal counterpart this year and is trading at $ 2,260 on Monday at 10:29 am in London.

Mitsui Mining maintains its estimate for this year's global deficit of 440,000 tonnes, the highest level in a decade this year, due to the reduction and closure of Glencore mines in Australia and Ireland to around 1 million tonnes.

The company estimates that ore production in China, the world's largest producer and consumer of refined zinc, will also decline this quarter due to the onset of winter, prompting local mills to cut production.