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Fitch Lowers 2019 Zinc Price to USD 2,500 a Tonne

Metal News - Published on Fri, 20 Sep 2019

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Business Standard citing continued deterioration of investor sentiment on the back of ongoing US-China trade war which is weighing on the economy, Fitch Solutions Macro Research lowered its average global zinc price estimates to USD 2,500 per tonne for 2019 from USD 2,600 per tonne earlier. This is despite tightening fundamentals, as global zinc slab production has declined by 1.1% YoY in Jan to Jun, while consumption has grown by 2.3% YoY in the same period. It said that furthermore, global inventories continue to fall, declining steadily since March 2019 to reach 285,000 tonne in September.

Fitch Solutions said that “We expect prices to stabilise over Q419 as appreciation pressure from refined production outages outside of China and shrinking inventories are offset by a strengthening dollar that will keep Chinese seaborne demand at bay.”

Despite weak seaborne demand, domestic Chinese consumption of zinc will rise with a solid steel production outlook, meeting the rise in production since May 2019 to create a balanced market. The smelter outages in Russia and the US will continue to weigh down the global refined zinc production growth rate, keeping global supply subdued.

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Posted By : Rabi Wangkhem on Fri, 20 Sep 2019
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