LIVE FUTURES REPORT 07/02: LME zinc price down 1.2% on 10kt inflow; Al holds on 14k outflow

The London Metal Exchange three-month zinc price was trading down 1.2% on the previous day’s close at around $2,179.50 per tonne during the morning session on Friday February 7, following a 10,100-tonne fresh inflow of the metal into LME-approved sheds in Vlissingen in the Netherlands.

This was versus a much lesser 375-tonne outflow of material from Rotterdam and Vlissingen, leaving LME global zinc stocks at 62,675 tonnes, 26.2% higher than the February-4 low of 49,625 tonnes. Demand for the galvanizing metal in Europe remains lackluster, suggesting that this delivery of metal may not be wholly unexpected, though deliveries onto the LME have been scant recently despite persistent spread tightness, making participants reluctant to hold the metal. LME zinc spreads have eased recently with the cash/three-month spread trading in a $2.75-per-tonne backwardation today compared with $14 per tonne on January 28. “LME zinc...

Published

Amy Hinton

February 07, 2020

10:24 GMT

London