Positive Zinc Outlook Threatened by New Mines

MetalBulletin reported that BNP Paribas’ Stephen Briggs believes that while zinc is widely thought to have a positive medium-term outlook, that is “tending to disappear” as pipeline projects replace recently closed zinc mines.

Briggs said:

A lot of people have been bullish on zinc for quite a long time now, and I think the real dispute is over when it will start to motor on its own fundamentals, as opposed to being dragged by the rest of the sector, and copper in particular.

There is a good medium-term story, but that’s tending to disappear, and is being pushed further out. The bullish case is built on the key mine closures that we’re starting to see, but people have been talking about that for the past two years.

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