Your trusted source for investing success

Tag: lme zinc

‘LME zinc’ refers to zinc traded on the London Metal Exchange (LME), where options and futures contracts for industrial metals are traded.

More specifically, LME zinc may refer to spot zinc prices or prices for futures contracts on the LME, as opposed to zinc prices on other metals exchanges.

LME zinc contract prices are quoted in US dollars, and may be settled via physical delivery between a network of LME approved warehouses around the world.

For this reason, LME zinc may also refer to inventories of zinc in LME warehouses. In addition to acting as a futures trading exchange and providing reference prices, the LME acts as a physical market of last resort for producers and consumers of a number of metals including LME zinc.

In other words, those in the zinc industry may sell LME zinc during oversupplied markets and draw on LME zinc inventories in the event of a zinc shortage. Some market watchers look to rising and falling inventory levels on the LME as one indicator of global supply and demand conditions. However, its important to note that physical delivery is the exception rather than the norm when it comes to the metal exchange.

The LME also publishes daily reference prices for zinc and other metals that are used by a number of market participants. Overall, the exchange is predominantly used to either hedge or take on price risk.

In early May 2016, Stefan Ioannou of Haywood Securities noted that LME zinc inventories had fallen below 400,000 tonnes, leaving supplies at roughly 10 days of global demand.

“It’s just a number, but it’s an optical benchmark at the very least,” he said. To put things in perspective, inventories have historically been as high as 1.2 million tonnes, and Bloomberg reported on April 11 2016 that LME zinc stocks were at their lowest level in nearly seven years.

The last time LME zinc inventories were this low was in 2005, at which point prices for the base metal spiked up to $2 per pound. That begs the question, why hasn’t a similar jump happened this time around?

“There is also zinc in off-market inventories, and the amount is somewhat vague,” Ioannou said. As with most metals traded on the LME, stocks held in warehouses tracked by the exchange are just one part of the supply picture.

Trevali Reports Q2-2017 Financial Results

Trevali Reports Q2-2017 Financial Results

Trevali Mining Corporation (“Trevali” or the “Company”) (TSX:TV) has released financial results for the three months and six months ending June 30, 2017. Second quarter (“Q2”) net income was US$0.1-million, or 0 cent per share on concentrate sales revenues of US$47 million and EBITDA1 for the quarter came in at US$10.8

Teck Reports Unaudited Second Quarter Results for 2017

Teck Resources Limited (TSX:TECK.A and TECK.B)(NYSE:TECK) (“Teck”) reported profit attributable to shareholders of $577 million ($1.00 per share) in the second quarter compared with $15 million ($0.03 per share) a year ago.

“I’m pleased with our results,” said Don Lindsay, President and CEO. “We generated adjusted EBITDA of $1.3 billion in

Largest Zinc Mining Locations

Largest Zinc Mining Locations

Zinc mining is a global business, and the three largest zinc mines in the world are located in various countries. Here’s a what you need to know about them.

Enter Your Log In Credentials
This setting should only be used on your home or work computer.

×

Privacy & Legal Policy

Privacy Policy

×
Investing News Network

Send this to a friend

Hi,
I thought you might find this interesting:
Zinc Prices Fall on Stronger US Dollar

URL: https://investingnews.com/daily/resource-investing/base-metals-investing/zinc-investing/zinc-prices-fall-stronger-us-dollar/