World zinc market could hit surplus in 2015

The global zinc market could be pushed into a supply surplus this year due to poor economic growth worldwide, but will return to a deficit by 2017, according to RBC Capital Markets analysts.

Although the zinc market recorded a deficit in 2013 and 2014 and remains in deficit, global economic indicators have performed poorly over the past 15 months and remain "anaemic", signalling weak demand for zinc over the next six to 12 months, the analysts said. Worldwide purchasing managers’ indexes (PMIs) have weakened over the past three months, with only 62% of the PMIs above 50 in February compared with 70% in November, according to the Toronto, Canada-based bank’s report. A reading above 50% indicates that the manufacturing economy generally is expanding, while a reading...

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This article was first published by AMM

April 17, 2015

03:22 GMT

New York