The fundamentals for zinc are favourable but the stock market,politics and international relations are the problem for price. I think the short term price pain will continue for a while but there is a good reason for NCZ to increase plant capacity and that is increased demand and price. Insto's would not have jumped in at these low prices only to see the SP to go lower in my opinion.
This from the latest report by Wood Mackenzie.31/07/2019 Report summary: "Weak sentiment has continued to bear down on the zinc price which fell to a daily low of $2372/t in July. Adding to the largely gloomy perception of demand was the continued slowdown in economic growth in China, which saw GDP growth at its lowest level for 27 years, and the slump in IHS Market purchasing managers index over the past six months. Macro-economic concerns have also affected sentiment in the rest of the world. China's smelters produced 513kt of refined zinc in June, a 10% increase over the average of the previous three months. Chinese smelter production is on target to achieve a forecast increase of 200kt in 2019. Even so, the global zinc market will be in substantial deficit. There continues to be a disconnect between sound market fundamentals, a deficit and low stocks, and current price weakness. "
NCZ Price at posting:
32.5¢ Sentiment: Buy Disclosure: Held
