Most market participants agreed that the London Metal Exchange price for zinc would likely surpass $3,000 per tonne this year, with some speculating that it could reach as high as $3,500 per tonne. The LME’s three-month zinc contract closed at $2,880 per tonne on Wednesday March 1.
The price “is now a function of supply-side dynamics,” one trader told Metal Bulletin sister title AMM at the annual IZA conference in California, USA on February 28. The extreme tightness in concentrates, coupled with the strike at Noranda Income Fund’s zinc-processing facility
in the Canadian province of Quebec, are the leading factors pushing the price higher, he said.
One producer said the zinc mine closures in...