Rahul Sharma, Director–India at the International Zinc Association believes that a breach of $2,670 per tonne in London Metal Exchange (LME) prices could signal a bullish trajectory for zinc.
Expressing positivity, he stated, "Zinc metal demand outlook seems to be positive as economic activities are coming back to normalcy."
Sharma further delved into the specifics of zinc prices, noting that they remained range-bound in the past year. Despite this, he expressed hope for 2024, citing market optimism surrounding increased zinc demand from emerging economies and the clean energy sector.
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Addressing the price range, Sharma indicated, "Zinc prices have been rangebound last year, with the LME price fluctuating between $2300-2700 per tonne."
However, uncertainties stemming from events such as the China property crisis, the Israel-Palestine conflict, and the Russia-Ukraine war, along with various restrictions affecting manufacturers, have led to minimal stock levels. Manufacturers are utilising reserved inventories for production, impacting demand, and disrupting the supply chain. These challenges have been reflected in the drop in LME prices, underscoring the complex dynamics influencing the zinc market's performance.
For the entire interview watch the accompanying video
(Edited by : Shweta Mungre)
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