New Orleans zinc stocks show role of incentives

Jul 24, 2013 | 02:00 PM | Mark Burton

Tags  zinc, New Orleans warehouses, LME warehouses, Glencore Xstrata, Pacorini Metals, Asturiana de Zinc, Mark Burton

LONDON — New Orleans has become a stronghold for zinc stored in London Metal Exchange-listed warehouses over the past three years, supporting physical premiums by removing surplus material from an oversupplied market.

But even if warehouses there stop offering incentives to draw metal in, premiums elsewhere won’t necessarily collapse.

New Orleans’ dominant position in zinc was strengthened July 17 when it received the largest one-day delivery seen since the Louisiana port was approved as an LME delivery point in 1998, as more than 80,000 tonnes of special-high-grade zinc were warranted in warehouses there.....

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