Zinc, Nickel Top Picks for Investors

In the latest issue of the Scotiabank Commodity Price Index, economist Patricia Mohr states that base metals are among the firm’s the top picks for investors in 2015. The report also states that investors’ focus on copper has taken the focus away from these metals in the equity markets.

As quoted in the market news:

In her analysis, Mohr said zinc prices strengthened in the second half of this year, averaging US$1.03/lb, ‘with investors and commodity funds expecting zinc concentrates to move into a supply-side deficit by 2016 alongside significant depletion. Century—the world’s third-biggest zinc mine—is expected to close in 2015:Q3 and Lisheen in Eire by late 2015 or early 2016.’

‘Nickel prices are expected to soar once NPI (Nickel Pig Iron) plants in China have used up their inventory on hand—forcing Chinese stainless steel producers to turn to more costly imports of FeNi and nickel cathode,’ Mohr predicted.

Mohr also said:

Base metals were a ‘bright’ spot in 2014—largely ignored by equity markets and are among our ‘picks’ for investors in 2015.

LME nickel and zinc ranked No. 3 and 5 within the ‘Top Five’ best-performing commodities of 2014, with price gains of 19.8% and 11.6% respectively in the year through December 15, 2014.

Click here for the Mineweb market news