Zinc bears on the attack again after LME stocks rise

News Markets Intelligence Careers Education Buyers Guide News Markets Buyer's Guide Advertise RSS Newsletter The Northern Miner MINING.COM Canadian Mining Journal Sign In Join Profile Sign out Copper Gold Lithium Nickel Commodities Iron Ore Rare Earth Coal Uranium Cobalt Diamond Zinc Platinum Palladium Silver Potash Suppliers Equipment TOP 50 USA Canada Australia Regions Africa China Latin America Europe Asia TNM Maps TNM Marco Polo Reuters | April 16, 2019 | 10:51 am Base Metals Zinc Zinc ingots from CEZinc, Canada. Image courtesy of Glencore Zinc is coming under sustained attack from bearish funds. The trigger for the assault was Tuesday morning’s London Metal Exchange (LME) stocks report, showing 10,625 tonnes of inflow into exchange warehouses. Sign Up for the Copper Digest Sign Up The London zinc price slumped from $2,867.00 per tonne to $2,821.50 in 30 minutes. It stabilised briefly before heading lower and was last around $2,815.00. Funds have pounced on the stocks signal as evidence that zinc’s period of maximum supply tightness is now passing. There can now be no doubting that the mined zinc concentrates segment of the market has flipped from supply deficit to surplus They have been emboldened by signs that the raw materials segment of the supply chain has transitioned from shortfall to surplus. Metals surplus, zinc bears reason, must surely follow. However, timing this shift in underlying market dynamics is difficult. Similar bear attacks took place in September last year and again in February. In both cases they proved premature, the price recovering to a nine-month high of $2,958.00 at the start of April. Have they called it right third time around? There are reasons to be cautious. Treatment charges signal return to surplus Zinc bears have got one thing right. There can now be no doubting that the mined zinc concentrates segment of the market has flipped from supply deficit to surplus. The gauge of the transition comes in ...

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