LME Zinc Stocks Jump 40% As Excess Supply Is Being Stored In LME Warehouses

Data last Thursday showed zinc stocks in LME-registered warehouses jumped 40% to 63,450 mt.

Rising inventories suggest that excess supply is being stored in LME warehouses. LME zinc inventories have climbed more than 300% since early February. LME zinc cash-to-three-month contango was $7/mt last Wednesday, compared with a backwardation of $30/mt at the end of March. Three-month LME zinc prices had fallen more than 30% since January.