Zinc Glut Diminishing as China Cuts Most Since ’04: Commodities
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Chinese zinc smelters, the world’s biggest suppliers, are cutting the most production in at least nine years after prices tumbled into a bear market, diminishing a glut that began in 2007.
Output of the metal used to rust-proof steel fell 6.8 percent in China in the first seven months, according to Beijing Antaike Information Development Co., which has researched metals for two decades. The nation accounts for 40 percent of global supply, the Lisbon-based International Lead & Zinc Study Group estimates. Prices will average $2,045 a metric ton in the fourth quarter, 10 percent more than the average since July 1, based on the median of 12 analyst estimates compiled by Bloomberg.