Zinc nears $4,000 and on track for biggest monthly jump since January
Zinc struck a four-year high near the $4,000 mark on Friday and was on course for its biggest monthly climb since January as available stocks on the London Metal Exchange shrank, renewing investor concerns over market tightness. Benchmark three-month zinc on the London Metal Exchange was up 1.6% at $3,947 a metric ton as of 0900 GMT, after earlier touching $3,955, its highest since May 2022.…
Zinc prices have surged to a four-year high near $4,000 per metric ton, indicating a significant monthly gain since January. This surge is attributed to shrinking available stocks on the London Metal Exchange (LME), which has intensified investor concerns over market tightness. The benchmark three-month zinc on the LME rose 1.6% to $3,947 a metric ton, touching a peak not seen since May 2022.
Analysts predict an 8.2% gain for zinc in August, marking its strongest month since the start of the year. Zinc prices have climbed 3.2% this week, with a sixth consecutive weekly increase. The LME will be closed on Monday for the British August bank holiday. The reduction in LME stocks, with 19,125 tons of fresh zinc warrant cancellations on Thursday, has decreased the available zinc in LME warehouses to 75,600 tons, equivalent to about two days of global consumption.
Experts attribute zinc's outperformance to the increasingly visible physical tightness in the market, with LME inventories sharply lower and mine and smelter disruptions restricting refined availability. Time spreads, where the premium of the cash LME zinc contract over the three-month forward, is currently around $245 a ton.
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