It has been the best performing base metal on the London Metal Exchange since 2016. Prices climbed to $3,595.50 per tonne on Thursday February 15 – the highest since July 2007.
“Last year, no one imagined prices could go above $3,000 per tonne. Now they can’t imagine them going below that level,” Guy Wolf, global head of market analytics at Marex Spectron, told Metal Bulletin.
“That process of an ever-increasing ‘equilibrium’ is typical of a bull market which is what we are in. The only time to be concerned is when sentiment is too extreme – that was the case at the start of February but is not now. There is no ceiling for prices until demand destruction occurs,” he added.
Zinc prices climbed above $3,000 per tonne for the first time in 10 years in August 2017 and have...