Where has all the zinc gone?
London Metal Exchange warehouse stocks of the galvanizing metal total 36,525 tonnes, the lowest amount this century.Almost 60% of that metal is earmarked for physical load-out, leaving just 15,175 tonnes of live tonnage, no more than a few hours worth of global consumption.The clear-out of visible zinc inventory has played out in a year of weak demand, usage falling by 3.2% over the first 10 months of this year, according to the International Lead and Zinc Study Group .
Production fell in China, Kazakhstan, Canada and Mexico, all of which are major sources of refined metal. The company’s Auby smelter in France, by contrast, will now not come back from scheduled maintenance but remain on care and maintenance until further notice. Such historically high premiums in the physical supply chain have both diverted metal from the terminal market and inverted China’s normal trade flows.
But Chinese zinc has also been exported to far-flung destinations such as Turkey, Italy, Mexico and the United States to plug gaps in the rest of the world’s supply. Macquarie Bank agrees, forecasting prices to bottom out at $2,500 in the second quarter and to remain subdued as the market shifts back to surplus.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Column: Europe should thank mild autumn for averting gas crisis this winterNorthwest Europe’s gas consumption fell sharply in October and November but primarily as a result of milder-than-normal temperatures rather than high prices, fuel switching and energy conservation appeals.
Read more »
Column: Nick Canepa's Chargers grades vs. Tennessee TitansUnion-Tribune columnist Nick Canepa grades the Chargers after their 17-14 win Sunday against the Tennessee Titans at SoFi Stadium.
Read more »
Column: Patriots' blunder showed perils of trying to do muchRaiders take victory as improbable as Holy Roller of 1978 in San Diego. This time, the Chargers benefit from Raiders' crazy touchdown.
Read more »
Column: With clock winding down, amazing Justin Herbert beats the Titans in secondsJustin Herbert was not having a great game against the Titans, but with the game on the line in the final seconds he leads Chargers on key drive to victory.
Read more »
Column: The hijab is rallying protesters in Iran, but the unrest is about so much moreIran’s hijab protests, which show no sign of abating, are evidence that mandatory headscarves are only the beginning of the people's discontent.
Read more »
Jeremy Clarkson Responds To Meghan Markle Column Backlash: “I’m Horrified To Have Caused So Much Hurt”Jeremy Clarkson has said he is “horrified” his incendiary comments about Meghan Markle in a newspaper column have “caused so much hurt.” The Grand Tour and Clarkson’s Farm star caused outraged over…
Read more »