Data show that since May 25, LME three-month zinc futures have been rising above $ 2,000 / ton mark. In London, driven by strong zinc Shanghai zinc from late May Crack 15,000 yuan and 16,000 yuan per ton mark, as of yesterday’s close, the main Shanghai zinc 1608 contract pullback 0.29% to 15,595 yuan / ton. The factors that caused this wave is zinc deposit supply gap message touted market to bull.
A direct result of zinc supply gap is declining dramatically overseas mines. A zinc industry sources, due to the depletion of resources and other reasons, the second half of last year, overseas dense old mine closed down. The fourth quarter of last year, Australia century mine shut down permanently shut capacity of about 450,000 tons, Iceland Lisheen mine is also around 10 million tons production capacity permanently withdrawn. Last November, Glencore announced production cuts 500,000 tons. Shanghai Nonferrous network statistics, overseas production shut down mines affect this year’s production capacity is about 1 million tons, while last year, zinc production is about 13 million tons.
For the domestic mining market have the same concerns. International Lead and Zinc Study Group data released Wednesday show that China’s zinc production in April (Zn) increased 5% to 456,000 tons. At the same time, in April the global zinc market supply gap narrowed to 2,500 tons in March as a shortage of 20,400 tons. Overseas concerns, China resume production or supply gap will narrow the zinc market. But this, the Shanghai Metals Zinc Industry analyst Wang Shuai analysis pointed out: “Although the price of zinc has reached a lot of mine production complex psychological position, but this year the environmental and safety requirements are very strict, limited domestic production of complex, difficult to make the market supply gap. “industry insiders estimate that this year will continue to zinc shortage.