Zinc prices in the global market are expected to remain stable over, $2,750 per ton. The rest of this year decreasing surplus, supply disorders including smelting, Chinese demand, and redemption in the world Economy.
Zinc prices hit a three-year high of $ 3,085 per tonne last month but slipped after that. Currently, zinc three-month contracts with the London Metal Exchange, 500 is quoted as $3,002 cash offerings are made at $2,986.50.
Gains Closed
No zinc, lead, and tin received just like the rest metals on the world market. There are prices for these metals increased to less than 10% from the beginning year compared to over 20% for such metals Aluminum, copper, and Tin.
According to the International Lead and Zinc study Commodity (ILZSG), a governmental organization, Refined global demand Zinc metal is predicted to rise 4.3% to 13.78 million tonnes (MT) this year. This is up from a 3.9% demand decline last year.
ILZSG was set up by the UN in 1959, its report said recovery for the first quarter. This year and zinc are expected use is likely to rise in Europe 6.9%, in Japan rising 15.4%. India, South Korea, demand for zinc will increase in Taiwan, Turkey, and the United States.
Excess supply
The group said it was global the supply of refined zinc will be higher than the demand this year as well and a surplus of metal will be 353,000 tons. This, however, is less than that Estimated at 488,000 tons Surplus from last year.
First ILZSG data the quarter showed it my output is 3.14 MT. (2.96 Mt), Refined Metal Production 3.47 Mt (3.34 Mt) and metal use or requirement 3.41 mt (3.09 mt). Its demands in China are expected to increase by 1.8% from 1.3% last year the supply will increase from 5.7% to 12.92 metrics. ILZSG said it expects world purification to increase zinc metal output it ranges from 3.1% to 14.13 mt year, after an increase of 1.6% last year.
ING think Senior Commodities Strategist Venue Yao, in his latest writing, said sustainable supply disruptions are driving zinc prices.
Yao said the latest disruptions are in China’s Yunnan Southwestern province due to power shortage and businesses are asked power load or stumbling force usage.
The result is a lack of electricity affecting the melting capacity of zinc 1.2 metric tons and 20,000 tons of refined zinc production has been affected. Any prolonged disruption could further affect zinc supply in China, Yao said.
My production Peru is recovering, controlling in cut Mongolia power consumption is possible Zinc is produced in the mine 5,000 tons reduced to 6,500 tons of refined zinc. All of this led to zinc premiums in North Europe is rising last two weeks for a short time tightness is felt in Spot Market.
Chinese Condition
Wood McKenzie, Global Metals Mining Research Institute that said there will be a refined market well presented this year, but the US rating agency Fitch Solutions suggests that zinc prices for 2021 and 2022 have increased due to the growing demand in China.
Dr. Heinzgergen Buchner, Director Industrial, and Automatic, IKP Deutsche Industrybank A.G. Analysis that of zinc prices the top is expected to be over $3,000 tons door the second half. Prices will fluctuate with $2,800 when band $400 bands the second half of this year.
