A gap between the three-month prices of zinc and lead on the London Metal Exchange could generally narrow and become more settled in the coming weeks after an extended period of flux, market participants suggested.

Nickel prices on the London Metal Exchange were down over 2% during morning trading on Monday August 12, undoing last week’s gains.

Three-month base metals prices on the London Metal Exchange were lower during morning trading on Wednesday August 14, with zinc undoing Tuesday’s gains.

Shanghai Futures Exchange zinc prices could see further downside after rumors that China’s State Reserve Bureau (SRB) was about to sell 50,000-60,000 tonnes of the metal, market participants told Metal Bulletin.

Fastmarkets has amended its formula for calculating the daily physical arbitrage for imports of copper, aluminium, zinc and nickel into China in response to the country lowering its value-added tax (VAT) rate.

Zinc prices on the Shanghai Futures Exchange were up during morning trading on Thursday March 21, benefitting from a softer dollar and improved market sentiment.

Zinc’s three-month price on the London Metal Exchange continued its ascent during morning trading on Tuesday August 13, appreciating by over 1% to steadily approach the $2,300-per-tonne level, while lead was the only metal across the complex to trade lower.

Base metals prices on the Shanghai Futures Exchange were mixed during Asian morning trading on Monday May 28, with zinc, nickel and tin registering gains, while aluminium prices were flat and those of copper and lead fell.

Zinc’s three-month price on the London Metal Exchange climbed by more than 2% during morning trading on Thursday June 6, breaching its nearby $2,500 per tonne resistance level while the metal’s forward spreads begin to show signs of easing.

Arbitrage for copper, aluminium, zinc and nickel imported into China on Friday May 25*