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January 2012 | Base Metals


Undisciplined market will continue to churn out zinc


The following article featuring our view on supply indiscipline in the zinc market was published in Metal Bulletin today.

Zinc producers rarely act in concert to balance the market as prices fall and demand wanes, Metal Bulletin Research analyst Andrew Cole writes.

And with zinc prices ranging between $1,800 and $2,000 per tonne on the London Metal Exchange, producers in China and the west will continue to churn out material.In September prices on the LME shifted sharply lower and they have ranged largely between $1,800 and $2,000 per tonne since then. If this was low enough to trigger cutbacks, we should...

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