Base metals prices on the London Metal Exchange had mixed fortunes at the close of trading on Thursday January 10, with zinc's three-month price continuing its downtrend while positive US job data spurred a marginal uptick in the US dollar index.
Zinc's three-month price continued to trade in a downtrend over the afternoon, closing 1.2% lower day on day and falling further from its support level of $2,500 per tonne. The metal last closed above that mark on December 20 last year.A continued easing of the tightness in the metal's forward curve continued into the afternoon, with its cash/three-month spread easing from a backwardation of $21.50 per tonne during morning trading, to $14.50 per tonne at the close.Additionally, there remains one dominant warrant-holding position that holds 50-79% of LME stocks, including tomorrow/next and cash."It seems like there's some lending going on. Generally, when you have a spread move like this, and it is to do with stocks, you get inflows the next day. When that happens, there's usually a wider market reaction," Macquarie Group base metals strategist Vivienne...