IZA CONF 2018: Zinc poised to fall on low Chinese demand, analyst says

An uptick in Chinese zinc mine production combined with a reduction in demand should push London Metal Exchange prices lower in the second half of this year, a senior base metals analyst at Macquarie Group said.

“Beyond this year, we continue to see zinc prices falling because the growth in mine supply is not matching demand,” Vivienne Lloyd told delegates at the International Zinc Association conference in Carlsbad, in the US state of California, on Tuesday February 13.
Lloyd expects zinc prices to average $3,100 per tonne this year and hover above the $3,000-per-tonne mark for the next few years. By 2021 and 2022, prices will tumble to the low $2,000s.
The LME’s three-month zinc contract averaged $3,412.80 per tonne in January 2018.

China's impact on the price will be so huge because 50% of...

Published

Millicent Dent

February 15, 2018

01:15 GMT

New York