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.
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.
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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