Zinc Wrap: Nexa Jumps 3.94% as LME Zinc Tightens Further
LME zinc held a four-year peak on Tuesday with cash at a $134 premium, lifting Nexa Resources 3.94% and Buenaventura 2.10%. Chinese exports eased short pressure The post Zinc Wrap: Nexa Jumps 3.94% as LME Zinc Tightens Further appeared first on The Rio Times .
Zinc-linked stocks from Latin American miners surged on Tuesday as the London market neared a four-year high and warehouse inventories remained thin. Nexa Resources, a Peru and Brazil-based base-metals producer, rose 3.94% to $15.82, while Peru’s Buenaventura increased 2.10% to $35.94. The LME cash contract closed at $3,987 per tonne, 134 dollars above the three-month price of $3,853.
This backwardation indicates that buyers are paying extra for metal available now, with LME zinc stocks at just 95,050 tonnes. Reuters described London as a perilous place for shorts, noting that three-month zinc hit $3,858 on Tuesday morning. Strong shipments of refined zinc from China are providing relief for short positions without crushing the price.
For Latin American miners, the scenario is favorable: limited supply, unexpectedly high demand, and a physical market that rewards immediate delivery. The tight LME zinc market with backwardation is benefiting Latin American zinc miners, while Chinese export flows are preventing shorts from capitulating.
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