Zinc Market Update (July 2, 2012)

Zinc prices moved in a positive direction this week after large declines the previous week.

Prices jumped 2.5 percent on June 28 as three-month zinc settled around the US$1,800/tonne level, up from US$1,756/tonne the day before. Increased spot market activity and a firming up of base metals in general have given the metal some positive support.

Recent worse-than-expected economic data out of China, Europe, and the US has taken its toll on the metal, which is used in galvanizing steel. Base metals are now receiving some bargain hunting support after the huge price dips that drove zinc down to new lows below the US$1,750/tonne mark.