Zinc plunged amid global supply glut

Source: Dukascopy Bank SA
Industrial metals apart from nickel closed lower on Friday amid broadly stronger US Dollar and elevated LME inventories. Meanwhile, market participants were cautious ahead of the HSBC flash manufacturing PMI release due on Monday.

Aluminum posted the biggest drop in 15 months amid increasing global supply glut. Global output of the lightweight metal surged by annualized 5.7% in January, according to the International Aluminium Institute. Meanwhile, global surplus reached 419,400 tonnes in 2012, reported the World Bureau of Metal Statistics.

Copper witnessed the biggest weekly decline since December 2011 amid ongoing global growth concerns. Moreover, expected property curbs in China and solid US Dollar sent the red metal lower.

Nickel was the only gainer, soaring the most in three weeks after the LME data showed cancelled warrants surged 7.6% on Thursday, the most in three weeks. However, elevated inventories restricted the upswing. Nickel stocks at LME warehouses jumped to 154,398 tonnes, the highest mark since April 2010.

Zinc finished in the red territory as signs of rising global oversupply continued to weigh on the metal.
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