Shanghai Metals Market reported that after closing yesterday at US$1,893 per metric ton (MT), zinc on the London Metal Exchange (LME) is expected to trade between US$1,885 and $1,905 per MT today.
Zinc Market News Directory
Reuters reported that Andrew Michelmore, chief executive of China's MMG Ltd. (HKEX:1208), believes that zinc prices are set to rise as demand increases and large mines shut down. However, that outlook depends in part on whether China steps up to produce the zinc that will eventually be needed.
Reuters reported that as China's demand for zinc increases and expectations grow that the metal will fall into deficit, major companies, including Glencore Xstrata plc (LSE:GLEN) and Nyrstar NV (EBR:NYR), are funding new mines.
Reuters reported that in 2014, China's zinc consumption is expected to rise as a result of urbanization plans, infrastructure projects and strong production of cars. As a result, the country will continue to import large amounts of zinc.
Barron's reported that in the next few years, zinc prices could be pushed up over 20 percent by the combination of mine closures and increased construction in China, perhaps hitting $2,400 per metric ton (MT) by 2015.
Mineweb reported that analysts' different ideas about recent and upcoming zinc mine closures and projected zinc mine openings have resulted in widely varying zinc price forecasts. As yet, it is too soon to tell who will be correct.
The Financial Times reported that although zinc prices have not fared well in the recent past, an increasing number of investors and analysts are optimistic that the metal will see a sharp rally in the next few years. Most are banking on the expectation that as large zinc mines close, there will not be enough new projects to replace supply.
MetalBulletin reported that some European buyers have agreed to premiums of $155 to $165 for special, high-grade zinc supply in 2014. That's $20 more than this year's FCA Rotterdam premiums.
BNamericas reported that according to Mark Cruise, CEO of Trevali Mining Corp. (TSX:TV), the short- to medium-term price outlook for zinc is "more compelling" than it is for other base metals. He believes zinc prices have a base of about US$0.85 per pound, but thinks that is strengthening.
Bloomberg reported that according to Wood Mackenzie, in the coming years, zinc may outperform other metals as mine closures reduce supply.