Zinc is starting to look decidedly sexy.The price of one of the...

Zinc is starting to look decidedly sexy.The price of one of the most overlooked key metals has been building on the heady gains of recent years to be standing at $US1.87/lb, a gain of 15% since the start of the year.That follows on from the galvanising metal’s 33% gain in 2002, and its 19% gain in 2021. So good times have arrived for the zinc producers and explorers.But you would not know that from their share price performances of late, with a clear disconnect opening up between the metal’s stellar price performance, and the middling price performance of the ASX-listed zinc stocks.Zinc stocks are not alone there. Iron ore, coal, copper, nickel and other mineral commodities are all trading at prices that analysts en masse think are temporary because global economic stimulus post COVID is waning.But fresh concerns about the physical supply of the commodities brought on by Russia’s invasion of Ukraine, and China’s pump priming of its economy, means the higher prices are proving sticky. Equity values will have to catch-up eventually.In the case of zinc, the 2020 and 2021 price gains were all about COVID-related supply constraints. This year’s price spurt is all about the energy crisis in Europe – a result of the bloc’s mishandling of the energy transformation.Europe accounts for about 40% of the world’s zinc smelting capacity but the soaring cost of energy is threatening the viability of its fleet of smelters in a major way.On top of the energy crisis, there is the potential for Russia, the biggest supplier of gas into Europe, to turn off the taps, sending energy costs for the already challenged zinc smelters higher still.Mass closures of Europe’s smelting capacity would send metal prices crazy.So all in all, Garimpeiro reckons the zinc space is in an interesting one at moment and that equities will be catching up with the on-going bullish outlook before long. After years in the shadows, zinc is strutting its stuff.

Barry FitzGerald: No gas, no smelter. These ASX zinc stocks are suddenly looking cheap and sexy - *