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

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August 2019 | Base Metals

Zinc: 2019 price forecast lowered

We still believe that zinc’s price decline is running ahead of the rebalancing of the fundamentals. But given the weak performance of prices so far this quarter and the fact that the window for a rebound is closing, we have cut our Q3 base case price forecast to $2,390 per tonne, from $2,500 per tonne.

Rebounds capped by macro factors
Zinc prices are consolidating at the start of this week after stalling above $2,300 per tonne last week when economic data raised fresh concerns that the global economy was heading for recession, particularly in export-dominant economies such as China and Germany, while the US Treasury yield curve inverted once again.

More demand woes

Chinese authorities announced interest rate reforms over the weekend, aimed to guide borrowing costs lower for some sectors impacted by trade-war uncertainties. Although this is a step in the right direction to...


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