The Conversation (0)
- AustraliaNorth AmericaWorld
Investing News NetworkYour trusted source for investing success
Top Stocks
Top Resource Stocks
Top Tech Stocks
Top Life Science Stocks
Trending
Trending Articles
Trending Press Releases
Trending Companies
Trending Reports
Resource
Popular Lists
Investing Ideas
Outlook Reports
- Lithium Outlook
- Oil and Gas Outlook
- Gold Outlook Report
- Uranium Outlook
- Rare Earths Outlook
- All Outlook Reports
Investing Guides
Tech
Popular Lists
- Top Generative AI Stocks
- Top EV Stocks
- Biggest AI Companies
- Biggest Blockchain Stocks
- Biggest Cryptocurrency-mining Stocks
- Biggest Cybersecurity Companies
- Biggest Robotics Companies
- Biggest Social Media Companies
- Biggest Technology ETFs
- Artificial Intellgience ETFs
- Robotics ETFs
- Canadian Cryptocurrency ETFs
Investing Ideas
Outlook Reports
- Artificial Intelligence Outlook
- EV Outlook
- Cleantech Outlook
- Crypto Outlook
- Tech Outlook
- All Market Outlook Reports
Investing Guides
Life Science
Popular Lists
- Cannabis Weekly Round-Up
- Top Alzheimer's Treatment Stocks
- Top Biotech Stocks
- Top Plant-based Food Stocks
- Biggest Cannabis Stocks
- Biggest Pharma Stocks
- Longevity Stocks to Watch
- Psychedelics Stocks to Watch
- Top Cobalt Stocks
- Small Biotech ETFs to Watch
- Top Life Science ETFs
- Biggest Pharmaceutical ETFs
Outlook Reports
- Life Science Outlook
- Biotech Outlook
- Cannabis Outlook
- Pharma Outlook
- Psychedelics Outlook
- All Market Outlook Reports
Investing Guides
Zinc Prices Hit Fresh 10-year High on Weaker US Dollar
Jan. 15, 2018 04:30PM PST
Base Metals Investing 
Base metals rallied on Monday, with zinc prices climbing to a fresh decade high on the back of a weaker US dollar and lower inventories.
Zinc prices climbed to a fresh decade high on Monday (January 15), supported by a weaker US dollar and declining inventories.
LME zinc closed up 1.2 percent, at $3,423 a tonne, having touched a peak of $3,440 earlier in the day — its highest level since August 2007.
Overall it’s been a strong start of the year for the base metal, with prices increasing 1.4 percent year-to-date and more than 20 percent year-on-year.
Some analysts believe zinc prices might jump even further in 2018, as solid Chinese data, a weaker dollar and falling inventories continue to lend support.
“The bullish view has become the consensus in the market, and it’s very hard to see a deep correction in prices from here,” Richard Fu, head of Asia Pacific sales at Amalgamated Metal Trading, told Bloomberg.
On Monday, a falling US dollar supported a surge in all base metals, as a softer greenback makes commodities priced in dollars cheaper for investors using other currencies.
“It is a dollar story … which is behind this move,” said ING analyst Warren Patterson. “If you look at the speculative position in the metals, there is potential for further upside, if we continue to get positive economic data and strong manufacturing data.”
For Patterson, the zinc market is going to be “fairly tight” at least for the first half of the year, as investor fears over shrinking supply and a lack of new mine production continue to increase.
Supply-side concerns have also been fuled by declining warehouse inventories. Last week, LME zinc stocks fell for a 13th week, reaching their lowest level since October 2008. On Monday, on-warrant zinc inventories fell by another 10,000 tonnes to reach 116,675 tonnes.
“Prices will stay elevated because we have a market deficit that requires inventory drawdown,” Societe Generale (EPA:GLE) analyst Robin Bhar said last week.
Firms recently polled by FocusEconomics estimate that zinc prices will average $3,009 in 2018. The most bullish forecast for the year comes from TD Economics, which is calling for a price of $3,362; Danske Bank (CPH:DANSKE) is the most bearish with a forecast of $2,650.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.
Latest News
Investing News Network websites or approved third-party tools use cookies. Please refer to the cookie policy for collected data, privacy and GDPR compliance. By continuing to browse the site, you agree to our use of cookies.