Zinc prices continue to approach a 3.000 $/Tonne

In the first quarter of 2021, Zinc prices, even though they stayed above 2.800 $/T and having touched i 2.900 $/T, they never reached the psychological threshold of 3.000 $/T of April 2019, objective formulated at the beginning of the year by the main international research institutes.

A brake on breaking through this threshold was the initial surplus of 400.000 T that though, gradually, thinned to 120.000 T, which together with the official LME stocks of 200.000 T, represent only the 2% of world consumption.

Recent economic data (+18,3% of GDP in China - country that, we repeat, consumes the 50% of the world zinc), the best conditions in the USA and consolidation in Europe, along with extensive infrastructure investment programs around the world, combined with specific situations of Zinc, such as the scarcity of minerals which heavily affects the transformation costs of foundries, they allow us to foresee in the short term the overcoming of the aforementioned psychological threshold.