Tin-zinc lead metal re-bull bull market storm

The recent metal futures market, led by such basic metals as nickel, lead and zinc, has demonstrated a magnificent bull market storm, and the prices of many basic metal futures have reached historical highs. Under the influence of the rising metal price, the non-ferrous metals sector in the A-share market turned against the market. The tin company continued to rise and became the new leader of the sector.

The strong rise in this round of metal futures began on October 5. As of yesterday, the base metals of the London Metal Exchange (LME) rose by more than 10% except for aluminum. The stars in this round of the market counted tin and zinc, which rose more than 20% in less than 10 trading days, respectively 23.9% and 20.2%. In this round of gains, the prices of multiple base metals hit a record. Among them, LME zinc hit a record high of US$4,020/t in London in early trading yesterday; LME nickel also hit a new 19-year high on Monday, hitting US$31,900/t; LME Tin also hit a new 17-year high of US$11,000/t.

Analysts said that supply shortages are still the driving force behind the sharp rise in basic metal prices. Due to concerns about the closure of the three tin smelters in Indonesia, LME3 monthly tin began to rise by more than 20% in just three trading days since last Thursday. Since the beginning of this year, LME tin price has risen more than 60%. At the same time, global metal stocks have fallen to very low levels this year, and strikes by mine workers in Canada, Chile, and other countries have increased tensions between supply and demand. As of yesterday, the stocks of LME nickel, tin and zinc were 4,896 tons, 12,235 tons and 127,400 tons, respectively. Nickel stocks are only enough for a day's consumption, while zinc stocks hit a 15-year low, less than the global one-week consumption.

After the continuous surge, as of yesterday's 22:30, except for LME aluminum, which rose 1.03%, the rest of the base metals fell back to varying degrees. LME March copper reported at US$7,690/ton, down 1.25%; LME March Zinc reported at US$3,915/t, down 1.26%; other varieties fell between 0.31% and 0.98%.