Moscow. December 16. Zinc in the course of trading on Wednesday fell to the lowest level in six years.
Base metals started the day on a positive note, but now prices are falling in anticipation of the first many years of higher interest rates the U.S. at the December meeting of the Federal reserve system, said the Agency Bloomberg.
Quotations of contracts on three-month zinc on the London metal exchange (LME) fell 0.8% to $1492 per ton. The drop earlier in the session reached 1.4 percent.
Lead prices fell by 1.8% on the message that the volume of stocks of metal in warehouses, which is tracked by the LME surged by almost a third, which is the highest rise since September 2004.
The futures market estimated at 78%, the potential increase in US interest rates on Wednesday. “The markets are desperate for clarity and transparency,” said a senior economist at ABN Amro Bank NV Casper Burgering. “The decision by the fed will undoubtedly help, if they agree on a rate increase” that will ease the uncertainty, he added.
In early trading non-ferrous metals rose in price after Morgan Stanley and Credit Suisse called the Nickel, copper and zinc among the favorites of the metals in 2016, after a slump in prices this year.
“Many investors remain confident that the long-term rally unrealistic due to weak demand from China,” said CITIC Futures analyst Zhu vagnsson.