Recent article in The Mining Journal wrt zinc price outlook...
S&P lowered its zinc forecast for this year and next, from an assumed $3200/t for the rest of 2018 to $2,800/t, and from $3,000/t to $2,800/t in 2019.
It said the revision reflected its expectation for higher supply amid "relatively tepid" demand growth and said global inventories had expanded after falling for more than two years.
"Moreover, we believe zinc prices at $2,800/t are close to the marginal cost of production for about 75% of zinc producers globally," S&P said.
"While we believe a high degree of price volatility will persist over the next few years, prices close to this level will likely act as a natural balance for demand and supply."
The LME zinc cash price has averaged $3,105.38/t over the past 12 months and last traded at $2,301.25.
S&P said it expected generally favourable commodity demand, primarily linked to its GDP growth forecasts for the US, the Eurozone, Latin America and China.
However risks were building for increased future price volatility in relation to trade tensions and concerns around higher interest rates, it said.
RVR Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
