The decline in spot treatment charges into China from last year's average of $200/t to the current level of $105/t has provided fundamental evidence of the tightening of the concentrate market. This clear improvement in zinc's fundamentals has been the primary driving force behind the rise of the zinc price this year.
Although the price rally lost momentum in August, it still managed to climb to its highest level since May 2015, and reaffirmed zinc's position as the top performing exchange traded metal with a year to date gain of 45%. As the tight concentrate market starts to constrain refined metal production, we forecast that inventories of refined zinc will be drawn down to critically low levels around the middle of 2017 providing additional fundamental support to further price strength.
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Global zinc short-term outlook August 2016 PDF - 497.41 KB 29 Pages, 14 Tables, 10 Figures
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Commodity market report | Aug 2016
Global zinc short-term outlook August 2016
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