Just a few days after short-term supply constraints in the copper market triggered intense trading on the London Metal Exchange, the zinc market already showed signs of tightening supply. On Thursday, the difference between spot zinc and three-month futures widened as high as $132.37 per tonne, the biggest spread this year; this reverse market structure of rising spot prices indicates that supply tends to be tight. On Friday, the benchmark price of zinc rose 0.9% and is expected to hit its highest closing level in four years. The strengthening of zinc prices occurred after the copper market was tight. Previously, there was a shortage of spot copper before LME's key delivery date, driving up the price spread and price sharply. Recently, a large amount of metal has been stored in LME designated warehouses, and the tense situation with copper has eased somewhat.

Just a few days after short-term supply constraints in the copper market triggered intense trading on the London Metal Exchange, the zinc market already showed signs of tightening supply. On Thursday, the difference between spot zinc and three-month futures widened as high as $132.37 per tonne, the biggest spread this year; this reverse market structure of rising spot prices indicates that supply tends to be tight. On Friday, the benchmark price of zinc rose 0.9% and is expected to hit its highest closing level in four years. The strengthening of zinc prices occurred after the copper market was tight. Previously, there was a shortage of spot copper before LME's key delivery date, driving up the price spread and price sharply. Recently, a large amount of metal has been stored in LME designated warehouses, and the tense situation with copper has eased somewhat.