Zinc....
Zinc inventories have started coming down on
account of tightness of supplies in spot markets. The markets of Zinc
have been in surplus since 2006 but the closure of some of the major
mines in North America and Peru in 2013 is expected to squeeze the
surplus from the markets. Zinc is majorly used in galvanization of steel
and as an alloying metal. ILZSG report last month showed that the
global zinc markets were in surplus of 265000 tonnes in 2012.
LME
Zinc inventories have already started to come down in London exchanges
and it is expected that the trend will continue in coming days. LME
inventories have declined by 2% this year to 1198300 tonnes till 4 March
2013. The recent projections of 7.5% growth in China are a welcome sign
for the metal.
Having said that, China is reducing its reliance
on zinc concentrate imports and is banking on Zinc production within
the country. The treatment and refining charges are expected to double
to $ 110 per tonne from $ 45 per tonne on 2012, if market sources are to
be believed. The rise in treatment charges indicates oversupply in the
markets.
LME Zinc three month forwards were down by $ 4 per
tonne at $ 2004 per tonne. MCX Zinc futures were trading at Rs 109 per
kg, down 0.6%. The prices have slipped from Rs 119 per kg down 8.4% from
13 Feb 2013.
Source by Commodity Insights
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