Steel Products Prices North America
March 16, 2021
CRU: U.S. Zinc Demand Still Strong
Written by Sam Grant
By CRU Analyst Sam Grant, from CRU’s Zinc Monitor
The U.S. COVID-19 vaccination program has continued to make impressive headway over the past month, with over 100 M doses now administered across the country. With more transmissible strains of the virus now present in the U.S., and with many states continuing to roll back containment measures, there is a risk of a renewed spike in cases that could pose a threat to the current pace of recovery. Meanwhile, the Biden administration has been able to get its $1.9 trillion “American Rescue Plan” passed by Congress, which will provide support to both individuals and businesses. This continued fiscal support will inevitably be positive for consumer demand in the short term but may contribute to the U.S. inflation risk. There has been a sharp increase in expectations of future U.S. inflation, as measured by the difference between yields on inflation-protected and nominal government bonds (“breakeven” rates), which have come to the fore in recent weeks. This could result in depreciation of the dollar and be supportive of dollar-denominated commodity prices.
