INTL ZINC & LEAD CONF: Downward trending LME zinc price could jeopardize project pipeline, BMO says

A forecast downtrend in the mid-to-long-term London Metal Exchange cash zinc price could bring about a shortage of zinc mining projects, BMO Capital Markets analyst Kash Kamal said in a presentation at Fastmarkets’ International Lead & Zinc conference on Monday April 15.

Although the LME zinc cash price performed well in the second half of 2018, it dipped by 9.7% to a $2,644 per tonne average in the first quarter of 2019, down from an average price of $2,931 per tonne in the final quarter of 2018. And while the LME cash zinc price traded around the 2018 fourth-quarter average at a $2,927 per tonne high on April 17, BMO forecasts that the price will dip to a full-year average of $2,685 per tonne in 2019. BMO is further projecting an even lower $2,491 per tonne LME zinc cash price average for the fourth quarter of 2019. BMO’s forecast softening in the LME zinc cash price has been attributed to global ability...


Amy Hinton

April 18, 2019

15:32 GMT