Quotes from Unicredit:
- Zinc prices have generally been weaker in December, and their retreat has accelerated over the past week. Previous dips had attracted buyers, but rebounds have been half-hearted, which is a warning sign. The downward trend could now extend further.
- This year initially saw zinc capped around $2,100-2,150/tonne, but then the market got bullish in anticipation of a perceived supply shortfall next year and prices rallied to $2,400/tonne. The recent pull-back now suggests prices might return to the earlier comfort zone between $1,950/tonne and $2,150/tonne.
- Given that the supply shortages are not expected to be felt until later next year at the earliest and that the economic outlook is perceived to have deteriorated in recent months, it is not surprising that zinc is giving back more of the summer’s gains.
The material has been provided by InstaForex Company – www.instaforex.com