Zinc’s three-month price gained 1.3%, making further strides towards $2,500 per tonne. A fresh cancelation of 7,800 tonnes kept price action elevated.
The metal’s nearby forward curve continues to exhibit tightness - the cash/three-month spread was in a $65.25 per tonne backwardation, narrowing from its widest backwardation in more than 10 years in December at $124 per tonne.
Similarly, a continued drawdown in LME stocks boosted nickel’s three-month price to an intraday high of $11,195 per tonne, up 5% from last week’s low of $10,630 per tonne on December 31.
“Nickel has been in a downtrend since June 2018 but has started a breakout from the downtrend; however,...