LME zinc ends at new all-time high

Zinc prices at the London Metals Exchange climbed to a new all-time high Monday on the back of low stocks and bullish technicals, with lead prices following higher with it, while general trading volume was light due to the LME's halting of its electronic trading platform earlier, analysts and traders said.

LME three-month zinc pushed to a new all-time high of $4,410 per metric ton before modestly retreating to $4,410/ton Monday.

"Zinc prices made new highs again, pulling lead prices up with it," said Stephen Briggs of Societe Generale in London. Over the short term, there is nothing to stop the metal from going higher as "stocks are tight and getting tighter. It's the only metal where stocks are consistently falling," Briggs said.

According to LME warehouse data, zinc stocks fell 1,625 metric tons to 101,350 tons, approaching the psychological 100,000 tons.

LME three-month lead prices traded to a new all-time high of $1,738/ton before retreating to $1,707/ton late Monday.

Meanwhile, traders said the LME's trading volume had dropped significantly Monday due to the halting of trade on its electronic trading platform, Select.

Select went down at 1022 GMT Monday, according to LME spokesman Adam Robinson, with an enhanced version of the platform having been introduced over the weekend. Robinson didn't speculate on the cause of the problem or when Select trading would resume.

However, traders in London said the new enhanced version of Select was introduced to enable the exchange to list its LME mini-contracts, due to be formally launched Nov. 20.

LME Select was still down following the LME Kerb close.

In other metals, LME three-month copper fell to a low of $7,265/ton but climbed by late afternoon to $7,350/ton.

"We're seeing the continuation of last week's performance" in the base metals Monday, John Kemp of Sempra said earlier, as "copper prices are going nowhere while zinc and lead remain poised to go higher."

According to LME data, copper stocks increased by 1,275 tons to 142,675 tons Monday.

Following copper's decline, nickel fell to a low of $30,500.00/ton before recouping part of those losses to $31,200/ton.

3 months metal (prices in dollars a ton)
Bid – Ask, Change from Friday PM kerb

Copper 7360.00-7361.00 Up 35.00
Lead 1707.00-1710.00 Up 27.00
Zinc 4425.00-4430.00 Up 135.00
Aluminium 2795.00-2798.00 Up 8.00
Nickel 31050.00-31100.00 Dn 350.00
Tin 10075.00-10100.00 Up 75.00