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Zinc Is Seen Trading A $1975 Up By 0.50%

ByCommodityOnline
Published 03/18/2014, 05:46 AM
Updated 05/14/2017, 06:45 AM



3 month forward Zinc prices at LME traded down by $16 on Monday and settled at $1966. Although Zinc stocks declined on Monday but believe that bearish bets on zinc that expire in two days on the London Metal Exchange may spur a jump in supplies delivered into warehouses tracked by the bourse. Secondary source: One company held at least 40 percent of the so-called short positions that mature this week as of March 13, based on exchange data.

The open position is estimated at more than 16,286 contracts, or 407,150 metric tons, according to Societe Generale SA. That’s enough to meet more than four months of North America demand, data from Barclays Plc show. In this regard the commodity may remain under pressure. This morning Zinc is seen trading at $1975 up by 0.50% from its previous close. We believe this could be a temporary gain but as the day progresses the commodity may turn down. So for the day we hold a bearish view on this metal. News: The fee to borrow zinc for a day jumped to $30 a ton today on the LME, meaning traders who want to roll forward their short positions will lose money. Traders will say how they want to settle their positions on March 19. They can choose to deliver the metal, roll the short positions forward or cover the position by buying back the metal.

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