Gold Silver Reports (GSR) – MCX Zinc settled down 3.06% at 181.95 as pressure continues on an expected surge in refined zinc output after a clutch of new mine openings has been derailed by bottlenecks at smelters across Asia, putting the brakes on an eye-watering price fall.
Benchmark zinc tumbled over 35 percent in the seven months to mid-September, with prices of the metal used mainly to rustproof steel also hurt by concerns of a global economic slowdown.
Prices are still down about 20 percent so far this year, but are expected to be underpinned in coming months by issues that have cut refining capacity in China, India, South Korea and Australia.
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China’s forced environmental cutbacks on zinc slag, or waste from the zinc smelting process, and falling refined prices in the second quarter, prompted many smelters to cut production.
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The extent of the backlog at smelters in China – which accounts for roughly half of global zinc production – is reflected in a seven-fold surge over the past two months in the charges levied by the smelters to refine ore into metal. – Neal Bhai Reports
