Base metals on the London Metal Exchange were mostly higher at the close of trading on Friday June 29, ending the week on a slightly brighter note despite broad pressure from trade tensions and dollar strength.
Continuing to struggle, zinc prices made a brief recovery during the day, moving back above $2,900 per tonne before drifting back toward $2,850 per tonne.The metal's three-month price made headway overnight, finding support on Thursday's news that major Chinese smelter's would cut zinc production by 10% to boost concentrate treatment charges and embolden price activity. In addition, a fresh cancelation of more than 14,000 tonnes in New Orleans on Thursday added momentary relief for the metal, principally used in steel galvanizing. That said, the metal's tightening spreads continue to deter market investment, with its cash/three-month spread narrowing to a backwardation of $49 per tonne, back from $47b per tonne on June 27. "Even though LME zinc's nearby cash/three-month spread remains in a backwardation...