Metal Bulletin reported that three-month zinc on the London Metal Exchange (LME) closed yesterday at $2,030 per tonne, down from $2,042 the previous day. The yearly rebalancing of commodity index funds is expected to affect zinc the most.
As quoted in the market news:
The losses offset a run-up in prices seen at the end of last year, which took prices comfortably above the $2,000-per-tonne level.
Last time zinc prices traded at those levels, in early 2013, producers showed interesting in hedging their production, and industry sources said there is interest in doing so again.
‘I was looking at hedging some of our concentrates exposure around Christmas time, but the market’s dropped $60 since then,’ a source at a zinc producer told Metal Bulletin.