BEIJING: Shanghai base metal prices rose on Monday, with zinc climbing for a sixth day and hitting a two-week high as inventories in China languish at their lowest in a decade.
Zinc stocks in warehouses monitored by the Shanghai Futures Exchange fell 11.8 percent last week to 30,800 tonnes, their lowest since October 2007. Meanwhile, zinc inventories in warehouses approved by the London Metal Exchange have dropped for eight straight days.
“Zinc fell a lot previously. This time the rebound will be more obvious,” said Xu Maili, director of base metals research at Everbright Futures in Shanghai.
ShFE zinc has lost 15 percent year-to-date, weighed down by concerns over global oversupply and fears the U.S-China trade row will hurt demand for industrial metals.
The London Metal Exchange is closed on Monday for a public holiday.
Source: Brecorder
