Zinc's three-month price on the London Metal Exchange fell at the close of trading on Monday February 11, hampered by broad strength in the dollar index while low LME inventories failed to limit downward price action.
The three-month zinc price has also fallen by 6% since reaching a July 2018 high of $2,800 per tonne last week. Since then, open interest in zinc has dwindled by more than 11% from around 350,000 positions to just under 310,000 positions. Total zinc stocks remain at a decade-low, with on-warrant material now below 60,000 tonnes, while one dominant warrant holding position has emerged at around 40-49% of LME stocks. "We believe the trade war sentiment will continue to cap gains in the longer term despite a moderately favorable fundamental picture," Sucden Financial said in its quarterly metals report. "Infrastructure investment, in particular high-speed railways, would provide additional support to the market. [All things being equal], zinc looks overdone above $2,800 per tonne, but we would expect advances to $2,500 per...