Growing optimism for a US-China trade agreement has prompted London Metal Exchange base metals prices to consolidate higher across the board in morning trading on Friday January 18, with zinc's 1.3% increase leading the charge.
Zinc's three-month price recently traded at $2581.50 per tonne, up 1.3% from Thursday's close. The climb in the metal's futures price comes after volatile price action last week, with tightness in the metal's forward curve easing when compared with the $77 per tonne backwardation last week. Meanwhile, there have been considerable aluminium stock cancelations on Friday, with 22,300 tonnes, or 1.7% of global LME warehouse materials, freshly canceled, 96% of which was took place in Asia between Busan and Port Klang, Malaysia. Market consensus is that it is too soon to know whether or not January 18's flurry of aluminium warrant cancelations constitutes rising physical demand for the metal in Asia, or whether the movement in positions is a reaction to imminent market closure for Lunar New Year amid...