Zinc retreated from its highest close since
February as pandemic-driven supply disruptions ease.
Zinc’s backwardation on the London Metal Exchange narrowed
Tuesday in a sign that supply is set to recover. Mines are
gradually resuming production as virus restrictions ease and
Chinese smelters are boosting runs.
Investors will focus on China’s policy-setting National
People’s Congress that starts on Friday amid expectations the
government may announce measures to help boost economic growth.
Spot zinc traded at $3/ton premium to LME 3-month contract,
narrowing from the highest level since Feb. 4.China’s zinc
output +7.3% y/y in April to 517k tonsThe National People’s
Congress could be the kind of fiscal jolt that can sustain
demand and reignite an economy that contracted by an
unprecedented 6.8% in the first quarter.
LME zinc -0.6% to $2,022/ton as of 12:43pm in ShanghaiPrices
closed at $2,033.50/ton on Tuesday, highest since Feb. 26LME
lead declines, nickel trades little changedCopper steadied near
the highest since mid-March
Easing lockdowns in major mining countries will mitigate supply
concerns for zinc, making further price rises difficult, Li
Suheng, analyst at Huatai Futures Co, says in note.
(Bloomberg)