Both metals rose five per cent on the London Metals Exchange last week with zinc crashing through US$3100 to reach a new 10-year high.

The metal is now up by 21.5% so far this year after also performing strongly in 2016.

 Analysts say the earlier rise was due to limited supply but now rising demand is starting to have an affect on price as well.

The news have led to rising hopes that Glencore could re-open the Lady Loretta zinc mine at Gunpowder north of Mount Isa, mothballed in care and maintenance since 2015. 

Zinc prices have climbed more than 90% since Glencore idled a third of its worldwide capacity for the metal including Lady Loretta that year with the mining giant saying at the time “Glencore believes that current prices do not correctly value the scarcity of our zinc resources.”

However Glencore have reacted cautiously to the news of the latest price surge with the Financial Times reporting chief executive Ivan Glasenberg said Glencore would “not jump the gun.”

“The market is going to need our tonnes soon but we will be cautious about when we bring it back on,” Mr Glasenberg was reported saying.

However the news did help the Glencore share price on the London market gaining 4.2% in Wednesday trading.

That was helped by gains in copper too as it gained 2.4% to $6496.50/t, its highest point since late 2014.

Copper futures trading in New York also raced ahead on Wednesday due to global supply disruptions and large-scale speculators placing huge bets on rising prices.

The price rose more than 3% from Tuesday's close to the highest since end-November 2014.

The zinc price rise is also good news for MMG as its Dugald River plant moves close to production in 2018.

The company is due to release its 2017 interim results on Wednesday.