Forecasts and market analysis based on price assessments from Fastmarkets MB and Fastmarkets AMM

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March 2019 | Base Metals

Zinc: Little sign of real physical tightness

Zinc prices are consolidating after recent strength. If the fundamentals are to lead zinc prices on their next leg higher, we would want to see real tightness starting to emerge in the physical market indicators. That may arise if demand picks up in Q2 or if a Chinese smelting bottleneck delays the production recovery we currently anticipate in our base case.

Dip-buying limits downside for the moment
The combination of dollar strength and further lacklustre Chinese economic data weighed on price sentiment across the course of last week. The LME three-month zinc price traded as much as 3.4% lower, edging beneath its 20-day moving average on Friday, before recovering to close the week at $2,718.50 per tonne, down 2.1% on the week.

China targets lower GDP growth of 6-6.5% in 2019...

Markets are still struggling to come to terms with China’s economic growth slowdown. There could be further pressure after Chinese Premier Li Keqiang projected economic growth will expand by 6-6.5%...


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