Last week's delivery of more than 60,000 tonnes of zinc into Antwerp's LME-listed warehouses, the largest single inflow since May 2013, has sent the zinc price spiralling lower to fresh 2018 troughs.
Zinc's three-month price dropped 1.2% to a low of $2,970 per tonne during morning trading on Friday May 4, and finished the day 2.7% higher at $3,055 per tonne.Yet in response to the spike in inventories across April 25-27, zinc's three-month price dropped 1.7% to $3,083 per tonne.The delivery prompted market speculation over the likely impact on the zinc price and premium going forward. Although the price dropped, it didn't drop as much as it could have given the ample inventory situation, while tightness in the concentrates market is keeping fundamentals relatively bullish.Zinc premiums have also recorded only modest falls - the Rotterdam special high grade (SHG) refined zinc premium was recently at $125-135 per tonne, unchanged from last month's premiums, while the premium in Italy fell to a three-year low at $155-160 per tonne.Actual spot trades...