Zinc foecast to be $1.25 in 2017

Fresh commentary from Scotiabank and CRU:

Most analysts are predicting that more clandestine zinc inventories will find their way to market as prices rise.

“While it is possible that further inventories are delivered to the major exchanges from hitherto less visible locations, it is inevitable that we eventually see an impact on refined (zinc) supplies and the current rally is likely the market preemptively getting ahead of this tightness,” Scotiabank penned in its July commodities index.

Scotiabank and CRU see the current market imbalance eroding both the known and less visible stockpiles of zinc.

Deller said, “The key question in the zinc market is no longer whether, but is now when will the market run out of metal?”

Scotiabank sees this depletion of stocks happening sooner rather than later.

In its annual Global Outlook report published in early July, the bank forecast zinc prices to average US$1.25/lb. in 2017.

“Prices are expected to rise over the coming years until sufficient supply can be incentivized back onto a starved market,” the bank penned in the comprehensive economic report.

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