Zinc prices have surged above $3,000—a level not seen in nearly a decade—while aluminum prices are nearing their highest point in nearly three years, fueling the upward trend in metal prices.

　　Zinc prices on the London Metal Exchange rose by as much as 5.8% to $3,132.50 per tonne, reaching their highest level since 2007. The settlement price ultimately closed at $3,119. Aluminum prices climbed by as much as 2.7%, hitting their highest level since September 2014, while nickel, copper, and lead also saw price increases.

　　The rally in metal prices also boosted mining stocks, with mining giant Freeport-McMoRan Inc. posting the largest gain among U.S.-listed mining stocks, closing up 5.73%. Alcoa rose 4.61% to $39.23, marking its biggest gain since late April. Rio Tinto (45.24, 1.03, 2.33%)’s U.S. ADR climbed 2.3%, with intraday gains reaching as high as 2.6%, the largest increase in three weeks; BHP Billiton (35.65, 0.86, 2.47%)’s U.S. ADR rose 2.8%, also the largest gain in three weeks. Vale (10.1, 0.32, 3.27%) saw its U.S. stock rise as much as 3.7% during trading hours and closed up 3.3%.

　　To address overcapacity and protect the environment, the Chinese government has stepped up efforts this year to shut down illegal aluminum and steel production capacity. Bernard Dahdah, a metals analyst at Natixis in London, said that efforts to boost economic growth ahead of the 19th National Congress later this year have also spurred metal consumption. “Earlier this year, price increases were mainly driven by supply concerns, but recently we’ve seen demand starting to provide support as well,” Dahdah said in a phone call.