The three-month zinc price is trading 1.5% lower on the London Metal Exchange this morning, Monday March 5, following a large stock delivery into New Orleans.
On-warrant stock levels in LME-listed warehouses in New Orleans have almost doubled following the 78,950 tonne delivery. This is the largest one-day net increase for zinc stocks in this location since July 2013. The backwardation in the cash/three-month spread has narrowed significantly to $3 per tonne from $24 backwardation at the start of the month. Aluminium and lead were both trading slightly lower, while the copper price were just $2 per tonne higher, with the market starting the week on a cautious note. "Concerns over a slower China and the potential fall-out from a US trade war are weighing on sentiment," William Adams,...