Trafigura Group Fuels Price Surge by Withdrawing Thousands of Tons of Zinc from LME Warehouses

Trafigura Group has pulled thousands of tons of zinc from London Metal Exchange warehouses, fueling price increases. Orders to withdraw zinc from LME-regulated warehouses surged by 97,225 tons over the past two days, marking the largest rise in over a decade. According to sources familiar with the matter, this move leaves less stock for other buyers and has been helping to support price increases since Monday. Due to the commercial sensitivity of the issue, individuals who wished to remain anonymous stated that behind the orders is Trafigura, one of the largest metal traders and producers in the world, operating several zinc processing facilities. While the orders represent some of the largest quantities seen in the zinc market in recent years, physical traders like Trafigura routinely withdraw large amounts of metal from LME warehouses for various reasons. Sometimes, metals are sent to producers in response to increased demand and supply shortages, or moved to cheaper storage locations elsewhere.