Zinc Buckled the weaker trend, page-30

Zinc Rebounds From Two-Week Low as U.S. Jobs Data Beat Estimates

By Alex Davis Nov 6, 2014 7:14 PM GMT+1100

Zinc climbed for the fist time in three days after a private survey showed companies in the U.S. hired more workers than expected, indicating improving demand prospects.

Zinc gained as much as 1 percent after closing yesterday at the lowest price since Oct. 21. Companies added 230,000 workers in October, beating the median forecast of 220,000 in a Bloomberg survey, figures from the ADP Research Institute showed yesterday. The private data came before a government report tomorrow from the U.S., the second-largest metals consumer.

“This is a good chance to buy in for zinc. Longer-term, zinc will be in a deficit, which should continue to support prices,” said Will Yun, a commodities analyst at Hyundai Futures Corp. in Seoul. “The improving U.S. economic data is good for overall metals demand.”
Zinc for delivery in three months on the LME rose 0.8 percent to $2,238 a metric ton at 4:09 p.m. in Hong Kong. The metal is up 8.9 percent this year, the third-best performer among the six main metals on the exchange.

Stockpiles for zinc tracked by the London Metal Exchange have fallen 25 percent this year, according to bourse data. The metal, used to galvanize steel, will be in a deficit this year and next, Bank of America Merrill Lynch said Oct. 15.

Copper in London was little changed at $6,634.25 a ton. In New York, December futures was at $3.085 a pound, while in Shanghai the metal for delivery in January advanced 0.5 percent to close at 46,810 yuan ($7,658) a ton.

German factory orders, adjusted for seasonal swings and inflation, rose 0.8 percent in September after a
revised decline of 4.2 percent in August, data from the euro area’s largest economy showed today.
On the LME, nickel, lead and tin rose while aluminum was little changed.