There is no let-up in growth in the zinc price remains the metal that had the best performance in 2017 surpassing the 20% the maximum of 2007.
This continued growth is shocking consumers, who would have expected a truce also saw the absence of Chinese operators who in the past week "golden week" were on vacation.
With the 50% of world consumption, China is the main cause of this situation originated by closures, temporary and permanent, for environmental pollution reasons mines and foundries.
On the Bavarian Government, inspectors sent to monitor local environmental conditions, they did stop around 1.800 mines (60% of the total) and numerous foundries are still inactive for pollution problems. Further inspections were carried out for foundries of which some are still Zinc inactive pending the completion of the necessary works to reduce the environmental impact.
The Chinese mining shortage is added to that world and this aggravates the availability of metal that will close the second ILZG 2017 with a deficit of 178.000 Tons.
The lack of zinc in China is also demonstrated arbitrage between the Shanghai Stock Exchange and the LME in London who see higher prices in China of about 80 $/Tonne, so the Chinese operators are cheaper to import Zinc.
The current buoyancy in prices is confirmed by the LME in London where prevails "Backwardation" where cash prices are higher than those in 3 months with a difference that touched 71 $/your he 29/09/17
The official LME stocks have fallen to 250.000 Tons, and in New Orleans currently stocks are reduced to 80.000 Tons (they were 300.000 Tons in 2016). Most of zinc, despite being oxidized for the stock of 6 years, It has been exported to China.
For Europe, which it is now stable importer of zinc you add an additional uncertainty factor represented by the exchange rate Dollar / Euro, while the world continues to hover the shadow of a possible war against North Korea that could create unpredictable sconquassi.
