SHANGHAI, Jun. 23 (SMM) - LME zinc has been strong over the past two weeks and led gains of nonferrous metals June 22, closing up nearly 2%.
Why LME zinc outperformed other base metals?
Increased canceled warrants on the LME have pushed up zinc prices, SMM said. The proportion of canceled warrants on the LME surged to 65.9% on June 22, the highest since May 28, 2013.
Here’s Why Zinc Spot Premiums Shrink Remarkably in China, SMM Reports
Meanwhile, global zinc supply remained in deficit during the first four months of the year. Global refined zinc output was 4.244 million tonnes in this period, while demand was 4.579 million tonnes. LME zinc inventories also fell sharply from the beginning of the year, SMM reported.
To sump up, the supply side has give support to zinc prices, SMM added.
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