Zinc price rises for third day with LME gripped by supply squeeze
me-metals: Zinc rose for a third day as a steep decline in inventories on the London Metal Exchange leaves buyers exposed to the most severe squeeze in decades.
According to me-metals cited from mining.com, Prices climbed as much as 1% on the LME, while inventories tracked by the bourse dropped for a sixth day, nearing historic lows struck in 2023.
Zinc stockpiles have been falling for months as smelters have dialed back production, and this week spot prices for the metal have surged higher as traders have rushed to secure remaining supplies in the LME’s warehousing network. One key question is whether Chinese smelters can export sufficient volumes to help ease the strain on buyers on the LME.
Cash zinc contracts traded at a $279-a-ton premium to three-month futures on Wednesday, near a multi-decade high above $300 struck on Tuesday. The Tom/next zinc spread — which represents the price to roll positions forward by one day — also remained near unusually high levels.
Zinc and other industrial metals have fluctuated in recent weeks, tracking shifting prospects for a US-China trade deal as well as growing uncertainty around the outlook for risk assets. Investors remained on tenterhooks on Wednesday as Beijing and Washington stake out positions ahead of a planned meeting between President Donald Trump and President Xi Jinping next week.
While the US leader said he’s expecting a “good deal,” he also said there’s a chance the talks might not happen.
Zinc was 0.7% higher at $3,009.50 a ton as of 12:14 p.m. local time on the LME. Other metals were mixed, with copper little changed while aluminum climbed 1.1%.
source: mining.com
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