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Bloomberg reported that on Tuesday the price of zinc rose the most in two months as inventories hit their lowest point since August. The news provides further support for the idea that global supplies of the metal are on the decline.
Bloomberg reported that on Tuesday the price of zinc rose the most in two months as inventories hit their lowest point since August. The news provides further support for the idea that global supplies of the metal are on the decline.
As quoted in the market news:
Stockpiles in warehouses monitored by the London Metal Exchange dropped 0.4 percent to 717,050 metric tons, the lowest since Aug. 12. Zinc is the favored industrial metal to gain next year, according to a survey by the LME this week. A global industry group is forecasting supply deficits in 2014 and 2015.
‘This should translate in the medium term into higher zinc prices,’ Daniel Briesemann, an analyst at Commerzbank AG in Frankfurt, said in a report. ‘The situation on the global zinc market is very tight.’
Zinc for delivery in three months climbed 2.2 percent to settle at $2,259.50 a ton at 5:50 p.m., the biggest gain since Aug. 20. Yesterday, the metal touched $2,166, the lowest since June 25.