Price Of Zinc The Highest In A Decade
Before the end of last year, the price of zinc has reached its record highest for the last decade because of the limited supplies of the industrial metal. Even suppliers such as Glocal chemicals supplier admitted that their supply is limited by the mining companies. Not to mention that there is a current high demand for the metal in China.
Looking at the predictions of analysts, companies will be able enjoy further gain if they decided to produce more to meet the demands. All eyes are set on Glencore PLC if they plan to cash out with the current increase in the prices of industrial metal.
Starting in the middle of June last year, the three month forecast of zinc at the London Metal Exchange has increased by over 24 per cent. The latest trading before the year ends was set at $3,081 metric ton. This is the highest number recorded since ten years ago in October.
Zinc is utilized in industries such as automotive and construction because it is lightweight as well as rustproof. When the price of zinc increases, it is expected that the prices of automobiles and steel will also increase accordingly. The future of the metal has made a comeback after it reached quite a low point in January of 2016. Because of this, mining companies decided to reduce the number they are producing which resulted to a price decrease of about 66 per cent when based on the its peak price on 2006.
Based on the data provided by the ING, the production of copper as well as aluminum on a global scale has increased by 23 per cent and 35 per cent respectively. This is compared to the figures released six year ago which is the same time the price is beginning to decline. Zinc production, on the other hand, has trailed behind with a slow growth of only 3.4 per cent in June.
According to the head of metals research at Societe Generale, Robin Bhar, said that limited supply is seen more in zinc compared to any other base metals. Despite this, there are still leading companies such as Glocal chemicals supplier that are selling zinc with hopes of bouncing back in the coming years.