Zinc Fell on Profit Booking as Prices Increased Despite Supply Concerns

Zinc prices fell -1.32% to settle at 247.05, with profit-booking operations driving the slide after earlier increases caused by fund purchasing and supply-side concerns. Refined zinc production increased in March, according to data from China, with a rise in output of 4.57% month over month to 525,500 mt.

Despite this, the overall output from January to March increased by 1.63% year over year, just exceeding forecasts. Along with comparable growth tendencies seen in the US manufacturing sector and Germany’s industrial output, positive signals from China’s factory activity suggested a robust expansion that was in line with market forecasts.

The research organization BMI predicts that after a resurgence in 2023, the production of refined zinc will continue to rise in 2024. As a result of China’s significant rise as the world’s top producer, there were growing annual output shortfalls in 2021 and 2022. That being said, the EPA projects a 192,000-ton yearly surplus in 2024—a marginal decrease from the surplus in 2023.

The completion of Norway’s Odda mine expansion and the anticipated restart of operations at Glencore’s Nordenham smelter in Germany are likely to support global zinc production even more. Global zinc consumption is expected to rise 2.6% by 2024, although this gain is likely to be outweighed by the world economy’s slow development.

Leave a Reply

Your email address will not be published. Required fields are marked *