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Chinese Demand Brings LME Zinc Out of 10-session Slump
Feb. 05, 2014 12:25PM PST
Base Metals Investing Bloomberg reported that today, London Metal Exchange (LME) zinc for delivery in three months rose 0.8 percent, to $1,968 per ton, breaking a 10-session losing streak. The uptick came on the back of speculation that growing Chinese zinc demand will reduce supply of the metal.
Bloomberg reported that today, London Metal Exchange (LME) zinc for delivery in three months rose 0.8 percent, to $1,968 per ton, breaking a 10-session losing streak. The uptick came on the back of speculation that growing Chinese zinc demand will reduce supply of the metal.
As quoted in the market news:
Mitsui Mining & Smelting Co., Japan’s top zinc producer, raised annual charges to overseas buyers by as much as 70 percent amid rising Chinese consumption, compared with a 15 percent gain last year. China’s imports of zinc concentrate climbed 24 percent in December from a year earlier, customs data show.
‘China is the biggest consumer of everything including metals,’ Michael Smith, the president of T&K Futures & Options Inc. in Port St. Lucie, Florida, said in a telephone interview. ‘Any time they’re buying, that’s always a bullish factor because it reduces supply.’