Bloomberg reported that zinc rose to its highest price since February 20, 2013 after China retained its 7.5-percent economic growth target.
Zinc Market News Directory
Earlier this week, Money Morning's Peter Krauth published an article in which he states that although precious metals tend to get a lot of attention, workhorse metal zinc looks poised for a breakout.
Bloomberg reported that according to a survey it completed, the fees that zinc companies must pay to smelters are likely to rise 4.5 percent in 2014.
Reuters reported that amongst the base metals traded on the London Metal Exchange (LME) in 2013, zinc was the best performer. Thus far, 2014 is also going well for the metal.
In a sector outlook piece released today, Dundee Capital Markets said that its "positive zinc thesis is unchanged." Put simply, the firm believes that major zinc mine closures in addition to "structural issues in the zinc industry" will begin to push prices for the metal up at the end of the year.
Bloomberg reported that today, London Metal Exchange (LME) zinc for delivery in three months rose 0.8 percent, to $1,968 per ton, breaking a 10-session losing streak. The uptick came on the back of speculation that growing Chinese zinc demand will reduce supply of the metal.
Reuters reported that analysts are seeing some investors trade in long zinc positions for lead due to the belief that though zinc supply is falling, there is a more immediate scarcity of lead.
Metal Bulletin reported that three-month zinc on the London Metal Exchange (LME) closed yesterday at $2,030 per tonne, down from $2,042 the previous day. The yearly rebalancing of commodity index funds is expected to affect zinc the most.
Platts reported that preliminary data released by the International Lead & Zinc Study Group (ILZSG) shows that worldwide demand for refined zinc exceeded supply by 2,000 metric tons (MT) from January to October of this year.
Platts reported that Commerzbank AG analysts believe that, contrary to the prevailing viewpoint, production from new zinc projects expected to soon come online may not offset "the large existing mines that are depleting."