The zinc price has defied expectations that oversupply would put so much downward pressure on prices that last month’s $3,100/ton high would be the peak for years to come.
Although the zinc price has drifted off those highs, it is currently just under $2,900 per metric ton for cash and three-month on the LME, zinc prices have remained stubbornly high, despite a complete lack of investor interest.
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Zinc price trends
As with aluminum and copper, the Shanghai Futures Exchange has outperformed London this year. However, even the SHFE zinc price has come off this month. Most metals have moved into a temporary sideways market.
The International Lead and Zinc Study Group estimates the zinc market recorded a supply-demand surplus of just 31,000 metric tons in January-April, compared with a surplus of 256,000 tons in the same period last year, according to a Reuters post. That also compares with an earlier April forecast for a 353,000-ton surplus this year.