Steel Products Prices North America
September 23, 2014
Higher Zinc Prices Forecasted
Written by Sandy Williams
Zinc prices hit a three year high in September at $2390/t, escalating quickly from the mid $1900s in March. Although the prices have moderated in the last few weeks zinc, as of September 18, zinc was at $2247/metric ton on the LME index.
The soaring prices are due to production shortfalls and higher demand. The commodity is used for numerous applications, including galvanized steel coatings and currency. The recovery of the construction industry and the strong auto industry has led to bump in demand. Zinc production however is facing a shortage. Two mines are expected to close next year that produce 7 percent of the global supply. Replacing that production is estimated to take at least two years, pushing the shortfall into 2018.
