SHANGHAI, Aug. 29 (SMM) – Many zinc traders contributed the surge in zinc market mainly to two factors, 21st Century Business Herald reported.
First, supply deficit in domestic zinc market was exacerbated by capacity cut for environmental factor.
Second, China’s zinc inventories move closer to 120,000 tonnes, which attracted inflows of speculative funds. Most of them came from those originally in steel futures market.
One trader said strange phenomena were seen in zinc spot trading market, according to the report, and approximately 70-80 per cent of domestic zinc inventories were controlled by several traders, and they made profits by pushing up premiums by holding back sales.
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