A crimp in London Metal Exchange zinc supply continues to fuel price action above $2,900 per tonne on Wednesday April 3, while a small contango in the copper nearby spread is contributing to increased buying.
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...