Chinese zinc producers and traders are watching for opportunities to ship metal overseas, after global prices hit the highest since the start of the year even as the domestic market struggles.
The recent rally in zinc on the London Metal Exchange has stretched the ratio with prices on the Shanghai Futures Exchange to the most in more than two years. While the gap isn’t quite enough to encourage overseas sales, it’s not far off. Major suppliers are preparing for that to happen, analysts and traders said, perhaps by sending material to the LME’s newly opened warehouses in Hong Kong.