Zinc outlook - Q4 2021
The impact of the coronavirus pandemic is still being felt in the zinc market. The emergence of the latest omicron variant seems set to remain a key factor in the near- to medium term. While, it is too early to gauge the impact of the new variant, our base case assumption is that like the delta variant before it, the emergence will have a relatively modest impact on the global economic recovery. Mine supply has rebounded strongly in 2021 following the sharp fall in 2020 due to coronavirus and is forecast to rise further in the medium term. The short-term outlook for smelter production is taking a hit as capacity is suspended due to high power prices but we have raise our forecast for the remainder of this decade.