Where is Zinc Contango Going? SMM Analysis

Published: Jun 23, 2017 12:01

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LME zinc has outshined other nonferrous metals recently due to well-behaved fundamentals. Falling visible and invisible zinc inventories have given a boost to LME zinc prices.

SHANGHAI, Jun. 23 (SMM) - LME zinc has outshined other nonferrous metals recently due to well-behaved fundamentals. Falling visible and invisible zinc inventories have given a boost to LME zinc prices.

LME zinc inventories decreased 124,000 tonnes from the beginning of 2017 as of June 22, SMM understands.

WBMS: World Zinc Market in Severe Deficit in January-April despite More Output

In this scenario, zinc contango on the LME will narrow or convert to backwardation in the near term, SMM predicts. LME zinc contango has shrank from $25 in early April to $10 per tonne.

LME Zinc Outshines Other Nonferrous Metals - Here’s Why, SMM Reports

As to China market, SHFE zinc prices should stay firm in the near term, helped by supply tightness and low inventories.

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zinc prices TCs zinc concentrate zinc inventories LME zinc prices SHFE zinc prices zinc ore zinc supply

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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