What were you zincing? That you’d actually get a zinc price forecast for 2015? (Wow, that was perhaps our worst play on words of all time – apologies!)
What you’re actually getting in this post is much more valuable than one price forecast for one metal at one point in time. Instead, you’re getting a glimpse into how MetalMiner can give your company the tools to make the most effective metal purchasing decisions.
Below is an excerpt from our recent report, “2015 Metal Buying Outlook: What Can We Expect for Base Metal and Steel Prices Over the Next 12 Months?”
MetalMiner’s Zinc Price Outlook 2015
Zinc is the other “MVP” – perhaps more like a “Sixth Man of the Year” in the NBA – among industrial metals. We recommended that our members start hedging zinc in June when prices were at $2,100/mt. *
After the big run that zinc has had this year, prices have been experiencing a correction over this past quarter. This is normal behavior since investors start taking profits after prices have risen significantly.
The fundamentals remain strong and zinc’s supply/demand balance keeps shrinking for the fourth consecutive year. The market is undoubtedly tightening and the question of whether we’ll have a deficit sooner or later is not all too relevant. The point is, fundamentals support the price action and now it all comes down to investors’ perceptions.
Zinc keeps outperforming the rest of industrial metals and is now in a correction curbing the gains experienced this year; yet the metal could significantly increase in 2015. Although its upside potential will be limited while commodities keep falling, we recommend buyers stay hedged as long as prices remain strong.
* What will be the next price target to write on that sticky note on your desk if/when the zinc market suddenly changes? Exact price thresholds are updated every month in MetalMiner’s monthly zinc forecast – start your free trial.
Or if you buy other metals, download the complete report by filling out the form below: