The holder of Colimet Ltd., Mario Colic, It expresses his thoughts on the progress of the current Zinc:
“Despite the absence of China due to the festivities of “Lunar year” (from the 4 al 10 February 2019) the prices of zinc resumed galloping at LME, and the prices today 3 months have exceeded the level 2.800 $/Your.
In just 5 days, by the end of January 2019, the price has returned to the starting level in July 2018.
The short-term expectations do not leave predict a cooling; rather a bullish trend continuation.
There are two factors that weigh:
- a reduction of stocks in official LME warehouses,
- reducing the production of zinc metal in China, due to the different shutdowns and foundries Zinc and Lead for air pollution problems and of soils due to the storage of residues Jarosite.
The expected resumption of imports of zinc in China, right after “Lunar year”, expand the differential between domestic prices and those abroad with favorable arbitrage for Chinese operators who will have to increase imports.”
The same considerations can be tracked at the following link: Zinc Performance