Over the months between April and July 2010, the forward price implied by the futures curve in 2015 fell 30% from around 115c/lb to 80c/lb. Subsequently, in the next three months, it lifted back to around 100c/lb by mid September. The reason behind the volatility is the way that the futures so closely tracks short term fluctuations in the spot price. The two charts below show the movement of one and two year zinc forwards relative to the spot price.
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