More turmoil in the metals markets, backwardation in zinc stretched to the widest since 1997. That is the premium for spot zinc over futures spiked on Thursday to the 25 plus levels. The move comes from a supply squeeze after inventories slumped this week to the lowest level in at least 25 years. It was only three months ago an unprecedented short squeeze occurred in the nickel market, the LME said it’s monitoring the situation closely. LME suspended nickel trading … Continue reading “Zinc Backwardation Widest Since 1997 With Inventories Lowest Level in Over 25 Years”
Commodities Get Boost From China’s Xiongan New Economic Zone
Over the past few weeks we have seen aggressive buying and new highs in the metals, in particular base metals Zinc, Lead and Nickel. The bringing forward of China’s Xiongan New Area.
Base Metals Pause After Zinc, Lead and Nickel Manic Buying
Base industrial metals drew a breath after the manic buying that saw zinc to the highest level in almost 10 years, we also saw lead and nickle joining in. Iron ore and rebar led the surge a few weeks ago buoying the Australian dollar and stocks.