LME Zinc Stock Hits 34 Months High

London Metal Exchange’s zinc inventory exceeded 300,000 tonnes for the first time since March 2006. Worldwide slower economy impacts on galvanizing steel demand. The inventory increased widely in Europe and USA since December while the stock keeps increasing in Malaysia and Singapore.

The zinc inventory at warehouses registered to LME increased by 8,500 tonnes to 305,750 tonnes on Monday fro previous day. The stock keeps increasing for more than 1 year after 58,100 tonnes in October 2007.

The stock increase pace is accelerated since October when world economy slowed. The stock increased by 50% in less than 2 months from 200,000 tonnes level in early December.

The stock increased by 77% to 53,900 tonnes in Johor, Malaysia and by 90% to 21,200 tonnes in Singapore since December 1.The stock also increased in Europe and USA since December. World automakers’ production cut reduced the galvanizing steel demand.