Available LME zinc stocks slump to one-year low after cancellations
LONDON, Nov 27 (Reuters) -Available zinc inventories in London Metal Exchange (LME) approved warehouses have slumped by 38% over two days to a one-year low after holders of inventories gave notices they planned to remove a massive amount of the metal, LME data showed.
The notices were given on Monday and Tuesday for 94,525 metric tons in total, reducing the available or on-warrant zinc stocks in the LME-registered warehouses to 154,125 tons, daily LME data showed on Wednesday. MZNSTX-TOTAL, 0#MZNSTX-LOC-GRD
Tighter LME zinc stocks spurred buying by commodity trading advisers - funds which buy and sell based on signals from numerical models - but also attracted offers from producers, said Alastair Munro at broker Marex.
The LME benchmark three-month zinc contract CMZN3 was last up 1.4% at $3,118 per ton on Wednesday after hitting $3,149, a four-week high.
A warrant is a legal document showing ownership of inventories. Cancellations of warrants indicate only an intention to remove the metal as it can be put back on warrant.
Reporting by Polina Devitt. Editing by Mark Potter
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