Zinc inventories in the London Metal Exchange-approved warehouses in Singapore saw a sudden spike in December 2019.
According to LME data, zinc inventories in Singapore rose 575 tonnes to 1,975 tonnes.
“Zinc cargoes that were slated to be delivered into China are now making their way to Southeast Asia because at least there is no huge arbitrage loss to bring cargoes there,” a source in Southeast Asia told Fastmarkets.
The arbitrage loss of bringing zinc to China fluctuated from $39.65 to $162.06 per tonne in December, according to Fastmarkets’ calculations
“Holders of zinc inventories would prefer to make a small...