Global zinc short-term outlook September 2023
Despite little evidence of a significant fundamental change to its dynamics, the zinc price moved higher in September. Having started the month at $2455/t, the price oscillated around this level for most of the month. However, a slide in the US dollar and sharp rise in oil prices saw metal prices track higher and the zinc price broke through the $2600/t level for the first time since mid-May. Meanwhile, exchange stocks shifted lower with inventories falling on both the LME and SHFE. This took LME stocks back towards July levels. At the end of August, cancelled warrants on the LME stood at 21%, and despite this month’s outflows they have risen to 46%, so LME stocks have the potential for further significant outflows, likely from warehouses in SE Asia for delivery to China.