Global zinc short-term outlook May 2022
After hitting a low of $3499/t amid concerns about the US and Chinese economies, the price has staged a bounce back supported by increased expectations that the Chinese authorities will be forced to increase their attempts to stimulate growth to offset the impact of the ongoing battle with coronavirus. As a result, an attempt to climb back above $4000/t seems imminent. The retreat in the zinc price earlier in the month did narrow the arbitrage and helped push spot treatment charges lower. However, the subsequent widening of the arbitrage means that the fall may well prove a temporary blip.