Reuters reported that MMG Ltd. (HKEX:1208) has reduced its 2014 zinc output target, commenting that supply concerns — caused partially by the impending closure of its Australia-based Century mine — are pushing prices for the metal up.
As quoted in the market news:
The mine, one of world’s biggest sources of zinc, is set to run dry next year, removing close to a half-million tonnes of the metal from the 13-million-tonne global market.
That has helped spark a rush among firms such as Glencore and Nyrstar to find new zinc deposits to feed rising demand from China which is buying the metal to rust-proof new cars and coat steel.
London Metal Exchange three-month zinc traded at its highest price in almost three years this week. Prices have climbed 20 percent since late March.