Steel Products Prices North America
December 13, 2018
Zinc’s Price Lacks Fizz as 2018 Draws to a Close
Written by John Packard
By CRU Senior Analyst Helen O’Cleary
Zinc’s price shed more than $1,000/t from its 2018 high in the mid-$3,500s in February to its year-to-date low of $2,311 in September, driven down by a combination of factors both in its own market fundamentals and in the broader political and economic landscape. The warranting of 78,950t in NOLA in March alongside Trump’s announcement of tariffs on U.S. imports of steel products set the tone for the rest of the year, with zinc’s price falling into official bear territory by July. In the end, it took the opening of the ShFE/LME arb to reverse the slide in zinc’s price and the subsequent decrease in LME stocks have enabled it to hold on to some of its gains, despite the arb having been closed since the end of September.
