Commerzbank: Zinc Could Benefit Longer Term From Chinese Supply Picture

Commerzbank says zinc could benefit in the medium term or longer from supply developments in China, but may remain pressured with other base metals in the near term as uncertainty in financial markets remains high. The bank cites news that Chinese research institute Antaike estimates that the country’s zinc market should show a moderate supply deficit next year. ““This should mean higher imports and support a reduction of still-high inventory levels,” Commerzbank says. “At the same time, the high surplus supply at present should also decrease on the global zinc market. We therefore see moderate upward potential for zinc prices in the medium to long term. In the short term, the price of zinc is likely to remain under pressure, though, in line with the other metals.” Three-months LME zinc, which fell from a high of $2,539.50 per metric ton in July to a low of $1,718.50 last month, was up $12 for the day