Zinc prices have rallied since 2020 over a long-standing mismatch between supply and demand, and despite global refined zinc output ramping up over recent months compared to 2020, it has been outpaced by demand.
Prices have averaged $3,688 per tonne in the year to date and are currently hovering around $4,069 per tonne. According to Fitch, at these levels, zinc is close to reaching its all-time high of $4,442 per tonne achieved in 2006.
“Our 2022 price forecasts imply that we expect prices to stabilize and weaken from here on in the coming months, despite remaining elevated compared to historical standards,” Fitch analysts said.
On the demand side, Fitch expects strong consumption from the steel sector to continue boosting demand for zinc in the coming months,…
