LME Zinc Stocks Rise, But Backwardation Widens, Highlighting Structural Risks
As of September 25, LME zinc stocks (registered plus cancelled warrants) stood at 123,400 tonnes, up 8,750 tonnes from September 21. However, the bulk of the increase stemmed from the conversion of LME off-warrant (non-registered) inventories, leaving limited growth in near-month deliverable tonnage. Against this backdrop, the LME zinc 0–3 backwardation reversed its earlier narrowing trend, widening once again from $52.80/t on September 22 to $101.69/t on September 28. With inventories rising yet the backwardation expanding instead of easing, continued vigilance is warranted over LME's structural risk.