The three-month zinc price on the London Metal Exchange maintained upward momentum at the close of trading on Thursday May 7, settling above the nearby $2,000 per tonne resistance level for the first time in over a month, while steady buying in copper saw price action similarly incline over the afternoon.
Zinc's underlying price on the LME closed at $2,003.50 per tonne at the 5pm London close on Thursday, its highest closing price since March 5, while turnover was strong at just under 9,500 lots exchanged over the day.
Market participants remain confident that renewed demand for zinc futures has emerged from domestic Chinese markets, with import arbitrage opportunities driving steady buying of the LME's cheaper three-month zinc price.
The most traded zinc contract on the Shanghai Futures Exchange was recently at 16,795 yuan ($2,360) per...