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1:56 PM ยท 26 November 2024

ZINC trading at its highest levels since mid-October ๐Ÿ“ˆ

ZINC
Commodities
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Zinc prices are up nearly 2.5% today, erasing all of November's losses and reaching the highest levels since mid-October. Investors are responding with increased buying after reports of the largest surge in orders to withdraw metal inventories from the London Metal Exchange (LME) in nine years.

Zinc futures have risen to their highest level since the formation of a double top pattern in October. Source: xStation

Orders to withdraw zinc from LME warehouses surged to 57,350 tons today, marking an increase of 47,800 tons in a single day. Bloomberg reports suggest that heightened demand for zinc in Singapore is the primary driver behind this sharp rise in stock withdrawals.

At the same time, reduced metal availability in LME warehouses is creating supply pressure, meaning less zinc is accessible to other buyers. This scarcity has led to a significant uptick in zinc prices, reversing the declines seen at the end of October.

While zinc stocks in LME warehouses rebounded in 2024, recent days have seen growing uncertainty among investors. LME data reveals that a single entity has purchased more than half of the available zinc stocks, adding further volatility to the market.

Orders to withdraw zinc from LME warehouses have surged to their highest levels in nine years. Source: Bloomberg Finance L.P.

 

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