Zinc futures on the London Metal Exchange rallied 3% at the close on Thursday November 15, ending a weeklong downtrend and supported by a decade-low downdraft in total LME inventories.
Across the entire base metals asset class, volumes traded on the exchange were moderately high, with the trading of zinc's 15,062 lots the most since Thursday August 16 and second on the day to copper's 16,465 lots."LME [zinc] stocks are down, and I see them continuing to fall. This has given rise to concern across the market, and tightness in the metal's forward curve could continue," Commerzbank Research analyst Daniel Briesemann told Fastmarkets by phone. "The zinc market is expected to ease noticeably over the course of next year, however, with new supply set to come on stream. With prices low at the start of the week, there was a fair amount of room for short-covering, and I think some follow-up buying will take place," Briesemann...