Zinc Deficit Increases As Supply Decreases

Zinc prices rose on the London Metal Exchange (LME) due to a lack of supplies from Peru following a strike at the Antamina zinc-copper mine, which supplies most of the zinc supply from Peru.

Zinc shipments are declining day by day, and according to the London Metal Exchange, the amount of zinc stored in LME warehouses dropped to 691,725 ​​tonnes, down nearly 2,050 tonnes of zinc, aided by workers at Antamina, who went on an indefinite strike.

In support of the metals market, the value of the dollar fell against the value of some currencies, making copper and other metals cheaper for buyers outside the US dollar. Vivienne Lloyd, an analyst at Macquarie, said the supply of zinc from the mines declined at the end of 2014 and that the smelter in China will be shut down after several decades from the beginning of next year. The average zinc price for the next year will be marked at $ 2300 per ton. Zinc is expected to be in short supply early next year, analysts said.

The next three years will see the closure of some of the dominant zinc mines. Several mines have recently ceased their zinc production, including the largest in Australia, owned by the MMG Group. In addition, no new zinc exploration projects are expected over the next four years. Therefore, the zinc market will certainly face a deficit.