Zinc's three-month price on the London Metal Exchange was lower at the close of trading on Friday May 31, settling just above $2,500 per tonne, while continued tightness across the metal's forward curve deterred fresh buying.
Participants seeking to purchase the galvanizing metal must now factor a cash/three-month backwardation of $144 per tonne in, while nearby spreads also remain less favorable for spot business. Zinc's cash-June spreads are now in a $41-per-tonne backwardation and its June-July spreads are in a $58-per-tonne backwardation, while LME data now shows three dominant positions across 40-49% of warrant holdings, tomorrow/next and cash positions. "China's official PMI for manufacturing has proved a disappointment this morning. It has fallen more than expected this month to 49.4, and is thus back in the...