LIVE FUTURES REPORT 10/01: LME zinc price stays on downtrend despite softer dollar index; tin still rising

Base metals prices on the London Metal Exchange had mixed fortunes at the close of trading on Thursday January 10, with zinc’s three-month price continuing its downtrend while positive US job data spurred a marginal uptick in the US dollar index.

Zinc’s three-month price continued to trade in a downtrend over the afternoon, closing 1.2% lower day on day and falling further from its support level of $2,500 per tonne. The metal last closed above that mark on December 20 last year. A continued easing of the tightness in the metal’s forward curve continued into the afternoon, with its cash/three-month spread easing from a backwardation of $21.50 per tonne during morning trading, to $14.50 per tonne at the close. Additionally, there remains one dominant warrant-holding position that holds 50-79% of LME stocks, including tomorrow/next and cash. “It seems like there’s some lending going on. Generally, when you have a spread move like this, and it is to do with stocks, you get inflows the next day. When that happens, there’s usually a wider market reaction,” Macquarie Group base metals strategist Vivienne...

Published

Hassan Butt

January 10, 2019

18:02 GMT

London