LIVE FUTURES REPORT 12/12: Zinc prices shrug off Glencore announcement; other base metals dip

Lead and zinc were the only base metals on the London Metal Exchange to close in positive territory on Tuesday December 12, despite news that Glencore will restart its Lady Loretta mine.

The restart will see Glencore add 100,000 tonnes of zinc to the market in 2018.
“Zinc prices have taken the news in stride, with investors rather comfortable about the fact that the company remains cautious about restarting output and that the overall zinc market remains in deficit even despite the limited Glencore restarts,” Edward Meir of INTL FCStone said.
The announcement was much expected by the market and prices were little affected, but it moved zinc’s cash to three-month spreads out of backwardation for the first time since October, it is currently at $3 per tonne contango.

“The headline news inevitably triggered a quick sell-off, down to the $3,090 per tonne area but with the devil in the detail being...

Published

Alice Mason

December 12, 2017

17:40 GMT

London