METALS-Zinc climbs as stocks diminish

By Kitco News / March 20, 2019 / www.kitco.com / Article Link


* GRAPHIC-2019 asset returns: (Updates with closing prices)By Eric OnstadLONDON, March 20 (Reuters) - Zinc prices rose on Wednesdayas inventories in London Metal Exchange warehouses hit freshlows, but other industrial metals dipped on uncertainty overglobal demand.Low inventories of many metals in LME-registered warehousesare helping to bolster prices despite weak economic data fromtop metals consumer China, said Ross Strachan, seniorcommodities economist at Capital Economics in London."The exchange stocks being at very low levels areunderstandably keeping many market participants on edge aboutthe outlook when there has been speculation that a (U.S.-China)trade deal is near," he said."We're still expecting very sluggish demand growth acrossthe metals and we think that will be a major drag on prices. Infact, you could see exchange stocks rise significantly later inthe year."Prices may also be gaining some support from investorsbetting on a dovish statement by the U.S. Federal Reserve lateron Wednesday, some analysts said. Benchmark zinc was the biggest LME gainer, rising1.6 percent to $2,863 a tonne in closing open outcry activity.


* ZINC/NICKEL STOCKS: LME zinc inventories ,down 55 percent this year, touched their lowest since October2007 and LME nickel stocks fell to their lowestsince June 2013, LME data showed on Wednesday. Inventories inChina, however, are more plentiful.
* AMBATOVY: Nickel gained support from Japanese tradinghouse Sumitomo Corp announcing that it was forced toshut its Ambatovy nickel plant in Madagascar for about two weeksin early February and could miss its revised annual productiontarget. LME nickel was untraded in final rings and was bid0.1 percent firmer at $13,200.
* NORSK HYDRO: LME aluminium hit a three-month peakof $1,951.50 a tonne before sinking into the red and ending down 0.5 percent to $1,937.Prices came under pressure after major producer Norsk Hydro said it had made some progress in restoring operationsafter it was hit by a ransomware cyber attack. However, thecompany was not yet back to normal, it said.
* ALUMINIUM OUTPUT: Global primary aluminium output fell to4.92 million tonnes in February from a revised 5.411 milliontonnes in January, data showed on Wednesday.
* TRADE: U.S. President Donald Trump said on Wednesday atrade deal with Beijing is coming along, with U.S. tradenegotiators going to China soon.
* LEAD TECHNICALS: LME lead , which closed up 0.3percent at $2,044.50 a tonne, could break through support at$2,011, Commerzbank technical analyst Axel Rudolph said in anote. "We will retain our immediately bearish forecast while theprice of lead remains below the mid-March high at $2,131," hesaid.


* PRICES: LME copper ended barely changed, down 0.03percent at $6,457 a tonne, while tin rose 0.5 percent to$21,375.<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Eric OnstadEditing by Jan Harvey and David Goodman)

Reuters Messaging: eric.onstad.thomsonreuters.com@reuters.net))

LME price overview COMEX copper futures Base metals news All metals news All commodities news Foreign exchange rates SPEED GUIDES)) Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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