Zinc declined in London Thursday as expectations of slower growth in China decreased the demand outlook for base metals. China’s attempts to cool inflation are expected to result in an 8.7 percent growth rate in 2011, down from 10 percent in 2010.
Strong evidence that the world’s economies will weather the current storm resulted in zinc having one of its most positive weeks, in terms of price gains.
Zinc prices traded marginally higher Thursday, as part of an overall optimism in the markets that the new Fed stimulus plan will stoke the U.S. economy’s recovery.
The base metals’ complex started the week in negative territory- pushed lower over pessimism in the US markets. Zinc for delivery within three months slipped 0.7 percent to $2,214 per tonne on the LME.
Zinc hit a four month high in early trading as economic data out of the world’s two largest economies, the United States and China, bolstered overall market sentiment.
Zinc has been the metal to witness the biggest gains over the past month, rising 5.5 percent to beat out counterparts copper, aluminum, and nickel.
Thursday, January 13, 2011