The prices of base metals on the London Metal Exchange were mostly higher during morning trading on Tuesday October 9, defying a sharp uptick in the US dollar index while high oil prices put pressure on global economies.
Climbing 2.6% over the morning, the three-month zinc price reached an intraday high of $2,698 per tonne while volumes traded were high at 5,715 lots as of 11am London time. Total on-warrant zinc stocks have maintained a downtrend over the year, currently at 137,775 tonnes on-warrant, down 16% since January.The tightness in the metal's nearby spreads continues, with zinc's cash/three-month spread most recently in a backwardation of $41.25 per tonne. "Zinc's improved technical configuration and micro-dynamics should support its price in the coming days. Falling LME stocks, tightening nearby spreads and growth-inducing policies from China are bullish catalysts that should provide zinc with sufficient fuel to maintain its current upward trend,"...