Zinc Market Trends
The price of zinc is going strong, even though the demand for zinc is a bit on the weaker side. Smelter utilization has come down from 83 percent to 77.2 percent, which is one of the reasons why zinc prices are steady. Actually, HSBC is reporting that the demand for zinc is going to rise, so much so that there can even be a deficit in the latter part of the year. |
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Towards the end of 2009, there was a big drop in demand for zinc. In North America, it dropped by 20 percent, in Europe by 16 percent and the CIS by 10 percent. However, this trend is likely to change as the demand for zinc grows, and there is already a response to the growing demand from Belgium’s Nyrstar. Nyrstar is the largest producer of zinc in the world and it is planning to start operations in its Balen plant soon.
This announcement has come recently, after a nine-month suspension of operations caused by the drop in demand. The average price of Zinc is likely to rise to $1,841 per metric ton in the year 2010. It is expected to rise further in 2011, when it is expected to go more than $2,500 per ton. At this point, the demand will be higher than the supply and hence, the increase in price.
Actually, it is China that is driving the zinc market. It produced more than 461,700 tons of refined zinc by the end of 2009. This output of refined zinc is expected to rise to as much as 4.7 metric tons.
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Zinc Market Trends
