From Reuters via Mining.com, April 11:
Is zinc going to be the next nickel?
Even as the London Metal Exchange (LME) tries to reassemble the pieces of its broken nickel contract, there are signs that zinc could be the next metal market to find itself in turmoil.
A raid on LME zinc stocks has seen available tonnage fall to two-year lows. Traders are tapping the market of last resort for metal to ship to Europe, where smelting capacity has been idled by high energy prices.
EXPLAINER: LME under the regulatory spotlight after nickel debacle
The effect is to tighten LME time-spreads and keep the outright price pushing higher. Last trading at $4,320 per tonne LME three-month metal is sitting just below a potential options black hole.
There’s a strong sense of deja-vu with both the LME copper market, which had to be restrained last October, and the nickel contract, which had to be suspended in March.
LME stocks, price and time-spreads
Perfect bull storm
Almost 60,000 tonnes of LME zinc stocks have been cancelled in preparation for physical load-out since the start of the month. Singapore was raided to the tune of 40,000 tonnes with the balance split between Baltimore and New Orleans....
....MUCH MORE
Zinc: Financial Instrument of the Future
