August 2012 | Base Metals
Fundamentals seem less bearish: Zinc - Market Analysis
Prices have started to look weaker, but this has come as the fundamentals appear less bearish. Chinese production cuts keep coming, tightening the domestic market, which in turn has seen SHFE stocks fall steadily, premiums strengthen and the arbitrage window for imports open wider. This may turn out to be relatively supportive to prices in the short term, limiting downside potential.
LME stocks climbed last week, but the trend remains down
Since peaking at 1.015m tonnes on July 20, LME zinc stocks have been drifting lower. They fell to 966,025 tonnes on August 13, but climbed a net 5,400 tonnes last week. The blip higher happened as a result of a large landing of 22,700 tonnes in Johor on Tuesday. Apart from that, overall it would appear that the general inflow of...
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