(Nov 4): Zinc held near its highest close since December 2024 on the London Metal Exchange (LME), as global inventories continued to fall.
Stockpiles of the metal used to coat steel held in LME warehouses have shrunk sharply since the start of this year, putting buyers under increasing pressure. Volumes reached the lowest since February 2023 on Monday.
A range of supply issues have propelled the LMEX index of six base metals to an 18% gain this year. Copper mines have suffered disruptions, constraints on Chinese capacity have helped aluminum, while several Western zinc smelters have dialed back production.
Zinc prices racked up a sixth monthly gain in October after the biggest supply squeeze in decades, with traders rushing to get hold of material. The premium of cash prices over three-month futures — a measure of market tightness — has since narrowed but remains at elevated levels.
Zinc was steady at US$3,100 (RM13,032) a tonne on the LME as of 11:20am Shanghai time, after jumping 1.5% on Monday. Aluminum fell 0.3% from its highest close in more than three years, while copper dropped 0.6%. Iron ore futures in Singapore were down 1.3% at US$103.65 a tonne.
Uploaded by Liza Shireen Koshy
