MARKET TALK: LME Zinc Quiet; Shorts, Longs Await Direction

LME zinc is subdued as short covering interest fades while nervous longs remain reluctant to call the market's next move, a London trader says. "Data from ILZSG showed zinc in a surplus and this took the market by surprise after the deficits of recent months," he notes. Stock rises in LME warehouses are said to be the result of Chinese production hikes, he adds, and "there's a concern this may derail the market's upside gains." LME zinc is last at $3,290 a metric ton, -3% from Thursday's high.