Risk of short-covering is increasing

摘要

The brief rally on the back of developments two weeks ago in China (productioncuts, talk of SRB stockpiling and a probe into ‘malicious short selling’) saw zincprices rise to $1,639/tonne, from lows of $1,487.50/tonne on November 19. Sincethen, however, prices have slipped again. Even another cutback announcementat the start of this week – that Nyrstar would close its Middle Tennessee Mines,with a loss of 50,000 tonnes of zinc in concentrate – failed to provide support,with prices trading around the $1,520/tonne level at the time of writing.