Zinc highlights

摘要

The zinc market was forced to absorb a massive 97,500-tonne net increase in LME stocks over a 12-day period covering late March and early April, which severely undermined sentiment and sent official three-month prices crashing to a year-to-date low of 1,016 dollars/tonne (46.1 cents/lb) on April 15. Previously, the market had been consolidating earlier gains above seemingly strong support at 1,100 dollars/tonne (49.9 cents/lb), after hitting a 3(1/2)-year high of 1,169 dollars/tonne (53.0 cents/lb), official basis, on March 1. The funds had therefore already largely exited their long positions in this market prior to the April 21 sell-off across the complex. Thus, with zinc already viewed as over-sold just above important technical support at 1,000 dollars/tonne, the market was spared the substantial losses that others endured. Copper, for example, shed almost 200 dollars/tonne or 6.1 percent, official three-month basis, on the day, while zinc eased lower by just 13 dollars/tonne or 1.3 percent, returning to its low of the previous week at 1,016 dollars/tonne. Prices have recovered cautiously in subsequent sessions.