Why Zinc Price are Increasing?
- Drop in Production
China is Largest producer of zinc. China’s zinc production has decreased, with July’s output dropping to a one-year low of 536,000 tons . It was at record high in December’23.
- Lower Inventories
Zinc inventories in Shanghai warehouses dropped by 9.3% signaling tighter supply. Cause prices to drive up.
- Higher Production Cost
Higher energy costs which contributes around 50% of zinc production expenses, cause higher production cost and thus effecting prices
- Positive Outlook from Major Economies
Increased manufacturing in the USA and China is driving demand for industrial metals, while China’s shift from deflation has improved market confidence.
Future Zinc Price trends
- Zinc market has strong potential, with opportunities across various sectors and is expected to reach $74.4 billion by 2027.
- BMI predicts zinc prices will drop to $2,500 in 2024, down from an average of $2,651 per ton in 2023.
Recent Zinc Related News
- Zinc demand in India expected to double in the next 5-10 years due to infrastructure investments.
- Zinc is mainly used to galvanize steel to prevent corrosion.
- Current zinc demand in India: 800-1,000 tonnes per annum.
- Per capita zinc consumption in India: 0.5 kg (global average: 4 kg; developed countries: 6-7 kg).
Source: Economic Times
Zinc: Short-term outlook turns bullish
- The short-term outlook for zinc is positive based on recent technical analysis.
- Improved demand factors are contributing to the optimistic view on zinc prices.
- Analysis of market trends and technical signals suggest potential price increases for zinc. Recent market activity supports the expectation of a rising zinc market in the near term.
Source: Economic Times
Zinc defies forecasts, prices surge as supply tightens and demand rebounds
- Zinc prices have surged, defying earlier forecasts of decline.
- The price increase is driven by global supply disruptions and a rebound in manufacturing demand, particularly in the USA and China.
- Zinc’s importance in achieving net-zero carbon goals and its role in various critical sectors are boosting demand, expected to triple by 2030.
Source: smallcaps.com.au
Zinc Rises on Stronger Demand in China and Weaker Dollar
- Zinc prices have risen due to increased demand in China and a weaker U.S. dollar.
- China’s economic stimulus measures are driving stronger demand for industrial metals, including zinc.
- The weaker dollar has made zinc cheaper for buyers using other currencies, further driving up global demand. The combination of these factors has led to higher zinc prices in the market.
Source: in.investing.com
