2011 has been a rather disappointing year for the zinc market. With the malaise of declining global economic growth, coupled with increasing zinc mine and production supply, zinc prices are not likely to see price support salvation until mid-2012. However, continued exploration and junior field development will likely be a predominant trend leading forward.
As the biggest consumer of refined zinc, news of China’s declining industrial output has pushed zinc prices lower on fears of the consequences for the global economic recovery.
NineMSN reports that shares in Meridian Minerals (ASX:MII)jumped after a Chinese state-owned entity, revealed plans to takeover.
Bloomberg reports that zinc rose to a two-month high as investors speculate that China is nearing the end of monetary tightening.
Zinc, among a variety of other base metals and commodities, has recently been said to have deviated from industrial-use demand and is instead being used as a short-term hedge to provide some Chinese companies and trading houses with liquidity in the increasingly tight Chinese credit markets.
China Shen Zhou Mining & Resources Inc. (AMEX:SHZ) announced the formation of a special committee.
Zinc prices have fallen dramatically due to large surpluses of the metal. Many analysts see a surplus of upwards of 750,000 tonnes in 2011, and continuing into 2012. However, a lack of concentrate coming from mines may bring the market into balance in the future.
The National Development and Reform Commission in China has reported power increase by restricted category firms. Such firms fall under the zinc (Zn), aluminium (Al), cement, steel, ferroalloy, calcium carbide and sodium hydroxide sectors. Lu Youqing, vice president of Aluminium Corp of China (Chinalco) is quoted saying: “Costs being driven up is a big problem.” [...]
China Nonferrous Metal Industry’s Foreign Engineering and Construction Co Ltd have received the last two regulatory approvals for its proposed AUD 10 million investment into zinc miner Terramin Australia Ltd. For full story, click here
Interfax-China declared that China Nonferrous Metal Industry’s Foreign Engineering and Construction Co Ltd have received the last two regulatory approvals for its proposed AUD 10 million investment into zinc miner Terramin Australia Ltd. For full story, click here
Monday, December 19, 2011