Zinc Market Update (July 30, 2012)

With production of mined and refined zinc not slowing at the same pace as demand, zinc prices are now nearing six-month lows.

Three-month delivery contracts have fallen from US$1,855/tonne to the $1,810/tonne level since last week, and are now just US$5/tonne higher than current cash settlement prices.

Slowing growth numbers from China, which currently has the strongest zinc consumption growth globally, have played an important role in the zinc price decline. Concerns surrounding the country’s industrial production, particularly in its real estate sector, have trickled into global growth concerns and sapped any confidence in the metal.