A slight increase of 0.11% in zinc prices was recorded as a result of mounting worries about supply interruptions. These worries have been raised by reports of a fire at the Russian Ozernoye mine project and by the recent halting of mining operations.
A fire is said to have occurred at the Russian mine, which is building a significant zinc-lead mine in Buryatia, further limiting supply. Concerns about supplies have been exacerbated by the sharp decline in LME zinc stockpiles since early September.
Citing low pricing and the effects of inflation, Nyrstar declared last week that it will temporarily close two zinc mines in the United States by the end of November. This is the third time that manufacturers have halted zinc activities in the last few months.
Concerns about China’s economy are heightened by the fact that the manufacturing PMI dropped to 49.5 in October, indicating a shaky rebound. Due mainly to lower-than-expected demand, the previous prediction of a 45,000-ton shortfall in the global refined zinc market is now expected to be replaced by a 248,000-ton surplus this year.
