Zinc shines bright thanks to supply woes, China’s RRR cut
“Zinc prices are currently trading near 10 year high levels on both LME and Shanghai exchange as supply woes continue to boost the metal majorly used in galvanisation. Significant mine closures in the last few years coupled with dwindling stockpiles at both LME and Shanghai warehouses has added to prospects of tightening Zinc market balance.
In today’s session, LME Zinc prices surged to $3281.5/t, highest since 2007 while MCX prices moved higher to a record high of Rs.215.55/kg buoyed further by news of selective monetary easing in China. People’s Bank of China’s had announced on Sept. 30 that it would cut the reserve requirement ratio (RRR) for some banks that meet certain requirements for lending to small business and the agricultural sectors, but global investors chose to react to that news only today after Chinese markets returned from a week long holiday.”