Zinc to soar in next few years: CRU

Great little snippet from latest CRU review - these guys know their onions and you have to pay for their reports. Grateful to http://www.scrapmonster.com/news/de...20-zinc-likely-to-hit-4500-per-mt-cru/1/12209 for this tasty morsel and love the reference to Ironbark - glad to be BIG on IBG

Demand to outpace supply by 2020; Zinc likely to hit $4,500 per mt: CRU
Also read Ironbark Zinc increments capital in the same webpage

According to Helen O'Cleary, analyst at CRU, the zinc prices could retouch the 2006/2007 highs.

CRU predicts that zinc demand will outpace supply by 2020, taking the prices to $4,500 per mt. However, during this year, the prices are expected to remain flat with some intermittent rallies. The CRU analyst expects the global zinc market to remain balanced in 2014. However, it may turn deficit in 2015.

The deficit in global market is expected to aggravate as fresh supplies from mines are expected to dry up over the next 5-year period. Also, the demand from Asian region excluding China will overtake Chinese demand towards the end of this decade.

The rise in zinc prices may force end-users to look for cheaper substitutes. China - the top consumer and producer of refined zinc may see rise in domestic prices during the second quarter of the year, backed by firm industrial and construction sector demand.

The Chinese decision to speed up the construction of railway tracks and highway roads may boost the domestic demand for zinc. According to Chinese customs, the country’s imports of refined zinc during the initial two-month period of the year surged higher by 84% over the previous year.

Last month, LME Zinc prices had touched one-year highs of $2,143 per tonne. The metal closed at $1,988.75 on the LME on Friday.