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

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April 2019 | Base Metals


Zinc: Consolidation, but fundamentals still tight


Zinc prices have started to give in to selling pressure after their strong run in March. The market may need evidence of genuine tightness such as a rebound in physical premiums and fresh cancellations to re-embolden bullish sentiment. We would not be surprised if we see those signals this quarter as we forecast the fundamentals tightening in Q2 and Q3.

Zinc price consolidates around $2,900 per tonne
Zinc prices are consolidating around $2,900 per tonne at the start of this week after gains stalled at $2,958 per tonne last week. However, there has been little upside reaction by zinc to the announcement from China’s National Development and Reform Commission (NDRC) to accelerate China's urbanization agenda in addition to increased infrastructure spending. This is somewhat surprising given the correlation of galvanized steel consumption with building construction and infrastructure development.

Tighter spreads begin to attract off-market stocks

Stock outflows from LME warehouses have averaged 879 tpd so far in April,...

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