RE:Zinc prices remain at near eight year highs

Over the past month, zinc has touched an eight year high, trading over US$2,800 per tonne.
Currently at US$2,560 per tonne, zinc remains one of the top performing commodities in 2016 as the markets supply/demand balance has tightened dramatically.
The market was in a deficit through the first 10-months of the year, and official data is expected to show the deficit continued through the year.
Refined zinc metal usage increased this year at the same time that supply cutbacks caused a drop in production.
Even with the zinc pricy rally in 2016, major zinc miners such as Glencore are expected to proceed cautiously with any attempt to ramp up mine production.
While cutbacks in production have lowered the metal’s supply, an increase in demand has also been a contributing factor to the price rise.
In 2016, China’s increased infrastructure spending boosted demand for the metal used in galvanising steel.
Expectations are that China’s infrastructure spending will continue through the first-half of 2017.