Base metals prices on the London Metal Exchange were predominantly lower at the close of trading on Friday November 23, with zinc's three-month price worst hit over the afternoon amid a sharp sell-off across the base metals complex.
Despite thin spot activity due to national holidays in the United States, volumes traded on the exchange were moderate after European markets opened in quiet fashion, with zinc's 12,348 lots topping the complex and copper's 12,059 lots a close second. Across the afternoon however, selling pressure began to mount across base metals after oil futures plunged more than 6% on Opec supply fears, which subsequently had a negative effect on equity markets and continued to deter risk-averse investors. Worst hit, the three-month zinc price fell more than 4% over the afternoon, hitting an intraday low of $2,490.50 per tonne despite continued outflows in LME stock and tightness in the metal's cash/three-month spread - recently seen in a $94.50 per tonne backwardation."The market seems to be characterized by low liquidity amid US holidays, while negative oil prices weighed on...