LME zinc inventories surge 54% in two days on weak demand
Zinc inventories in warehouses listed on the London Metal Exchange (LME) have soared 54% in two days to their highest level in 17 months, highlighting a market surplus amid weak demand.
LME stocks of the metal used mainly to galvanize steel have soared to 141,750 metric tons, LME inventory data showed Wednesday, the highest level since March 2022.
“In the last few months we are not getting the demand. The steel sectors are slowing down, so there’s not a lot of demand for galvanized right now; that’s fallen off a cliff,” said Robert Montefusco at broker Sucden Financial.
Last month, analysts polled by Reuters were forecasting a global zinc market surplus of 135,500 tons this year.
The benchmark zinc price was the biggest faller on Wednesday on the LME. By 1132 GMT, it was losing 1.45% to $2,281 a metric ton.
The rise in zinc inventories came ahead of the expiration of LME monthly futures contracts on Wednesday, when investors can deliver physical metal to LME warehouses to satisfy their futures positions.
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