The three-month zinc price continues to trade near the $3,000 per tonne mark. The metal’s cash/three-month spread was recently in a backwardation of $70 per tonne, with the current spread heading toward levels seen in December 2018, when the cash/three-month hit $124 per tonne.
Meanwhile, LME zinc stocks continue to dwindle, and remain near their lowest level on record at 43,150 tonnes on-warrant. LME data now shows two dominant positions across 90-100% of tomorrow/next and cash positions.
Spot zinc treatment charges (TCs) moved higher this week, with participants in the Chinese market reporting a resurgence of Chinese zinc smelting production set for the second quarter.
“Zinc prices may look to...