“Base metals have been getting hit hard today, finally getting swept up in the equity rout. The group is down across the board, with zinc and nickel both being hit especially hard,” INTL FCStone analyst Edward Meir said.
Despite falling LME stocks and backwardation in spreads, the complex crumbled with aluminium, nickel and zinc all down compared with Monday’s 5pm closing price.
The three-month zinc price closed $91 per tonne lower despite a 14,650-tonne cancellation in New Orleans, where 99% of LME zinc stocks are held.
“The LME aluminium price continues to struggle due to persistent selling at $2,270 per tonne… With the Lunar New Year holiday fast approaching and...