Falling further from the $3,000 per tonne support level, zinc’s three-month price reached a daily low of $2,912 per tonne during the afternoon.
“Zinc is under significant pressure,” Geordie Wilkes, head of research at Sucden Financial told Metal Bulletin. “The backwardation is still in place as shorts look to roll their position, buying the near dated and selling the cash/three-month,” he added.
Zinc’s spread activity has narrowed again
this week, pushing prices lower while bearish sentiment dominates the metal’s short-term trajectory.
Currently in a backwardation of $52.50 per tonne, the zinc cash/three-month spread narrowed
from $40b per tonne earlier in the day, and $32b per tonne on Tuesday.