Zinc-Major Market Developments in September
Reuters reported that Zinc market’s downside may be limited since its prices plunged in September and rebound has been muted by the prospect of at least another year of over-supply.
Reuters reported that Zinc market’s downside may be limited since its prices plunged in September and rebound has been muted by the prospect of at least another year of over-supply.
As quoted in the market news:
“In my view you’ve got a certain amount of cost support. Between $2,200 and $1,800 probably half a million tonnes of swing capacity mine output in China could go off stream,” he said. There had been recent evidence of slowing demand for zinc in Europe, but the net effect of that softening consumption and production curbs could even be a moderating surplus, he added. Fastmarkets analyst Will Adams said there was room for prices to fall much further, but thought $1,800 was the level at which the market would get nervous about supply cuts. The London Metal Exchange (LME) three-months zinc price was last indicated at $1,906 a tonne. In September it fell to $1,821, its lowest since July 2010.