LIVE FUTURES REPORT 26/10: LME zinc rallies higher; rising dollar puts pressure on rest of base metals

Base metals prices on the London Metal Exchange were on divergent paths at the close on Thursday October 26, with zinc the star performer.

The three-month zinc price closed $34 per tonne higher, rising over 4% so far this week. Further cancellations today mean there is no on-warrant stock available in Antwerp and the cash/three-month LME spread is still in significant backwardation, most recently at $60.50 per tonne. “The LME zinc strength seems to have been triggered by a resumption of tighter present fundamentals. Indeed, available stocks have slumped by 20,275 tonnes or 10% on the LME since Monday,” said Boris Mikanikrezai, Metal Bulletin analyst. “But considering the fall in open interest since Monday, the driving force behind LME zinc is short-covering rather than fresh buying. This indicates that bullishness has not picked up of late,” he added. Aluminium prices also closed higher but dipped back...


Alice Mason

October 26, 2017

17:38 GMT