Zinc market weighs up impact of Glencore cut on 2016 contracts

As the mating season for 2016 zinc premium contracts gets under way, the market seems cautious about the effect that Glencore’s production cut announcement will have on talks.

The company’s pledge to slash 500,000 tonnes of capacity amid weak prices followed a rally for zinc on the London Metal Exchange and a turnaround in sentiment.  However, the base metals complex has since shed gains as weak macro-economic factors became overbearing. As a result, market participants are not overly optimistic that Glencore’s cut will translate into a big jump in annual contract premiums. “The producers will obviously want the premiums to rise, but demand does not look all that...

Published

Deepali Sharma

October 29, 2015

12:23 GMT

Singapore

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