Just last week, zinc prices experienced a tough couple of days as the London Metal Exchange (LME) three-month price fell by $100 per metric ton.
According to a report from Reuters, this has been an interesting month for zinc as the metal previously hit a five-year high earlier in October. Its slide can be attributed to news of producers planning to increase output of the industrial metal.
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North American zinc mining continues to play a significant factor with Canada’s Teck MIning providing a three-year production forecast from its report in Q4 last year.
“Zinc production is expected to increase significantly as the mine enters a phase with high zinc grades and a higher proportion of copper-zinc ore processed, with our share of zinc production during 2017 to 2019 expected to average more than 80,000 tons per year,” the report stated.
Nothing to Worry About With Zinc’s Decline?
Our own Raul de Frutos recently covered zinc’s decline and warned that it’s nothing to worry about.
“Don’t expect zinc to turn bearish or anything. Meanwhile, in China, manufacturing provinces have found a way to curtail power costs, no matter what the price,” de Frutos stated.
Actually, most industrial metals saw their prices increase as energy and transportation costs went up, as well. Also of note we oil prices, which flirted with $55/barrel this week and U.S. shale drillers increasing production.
How will zinc and base metals fare for the remainder of 2016 and into 2017? You can find a more in-depth copper price forecast and outlook in our brand new Monthly Metal Buying Outlook report. For a short- and long-term buying strategy with specific price thresholds: