Zinc retreated on rising stocks at LME and SHFE

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Scanpix/Reuters
Industrial metals apart from nickel tanked on Wednesday as market participant remained worried about Greek debt woes and looming US fiscal battles. Market sentiment was further dampened by increased caution ahead of the key US data due on Thursday. Meanwhile, softer US Dollar restricted the downswing.

Aluminum slumped as stocks at global exchange warehouses remained elevated despite a recent decline in the world's unwrought aluminum stocks. Inventories at LME warehouses jumped by 72,000 tonnes to a record high last week.

Copper slid on fears that US economy may fall into recession after automatic tax increases and spending cuts will come in force on January 1. Meanwhile, China's demand remained sluggish weighting on the red metal's price.

Nickel climbed on downward revisions of the global surplus next year. Standard Bank cut its surplus estimate by 17% amid delays in nickel projects.

Zinc retreated, following increasing inventories at LME and Shanghai. Stocks at LME warehouses surged 39,575 tonnes last week, while inventories at SHFE warehouses advanced 6,571 tonnnes.


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