With investor confidence in the market driven by predictions of strong demand growth and U.S. interest rate decreases zinc surged by 1.49% to settle at 265.2. Zinc prices were supported by encouraging signals from China, where imports and exports increased in April, indicating a recovery in both domestic and foreign demand.
The market’s mood was further bolstered by Boliden’s plan to resume production at the Tara zinc mine, which is Europe’s largest zinc mine. With the mine scheduled to reopen in the fourth quarter of this year and to operate at full capacity by January 2025, supply issues should be resolved and zinc prices should be supported.
In contrast to a deficit during the same period the previous year, data from the International Lead and Zinc Study Group (ILZSG) showed a growing worldwide zinc market surplus in February. Notwithstanding this glut, social stocks of zinc ingots in the main Chinese markets fluctuated, but overall levels showed stability in the face of post-holiday hoarding and shipment arrivals.
