The outlook for coating metal zinc is bearish on increase in smelter supply, weak demand, and Chinese curbs on steel production, analysts have said.
Zinc, used mainly as coating to protect steel and iron, has dropped to near two-year low and is currently trading at $2,328 a tonne on the London Metal Exchange (LME) for three-month contracts. Spot zinc is quoting at $2,331.50.
Zinc prices have dropped over 20 per cent in 2023 with LME-registered inventories nearly doubling to a 12-month high.
The decline in zinc prices has resulted in research and rating agencies such as BMI, a unit of Fitch Solutions, and Goldman Sachs to lower their prices outlook for the metal.
