Economics
Zinc Glut Rising to Two-Decade High Threatens Rally: Commodities
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The largest glut of zinc in almost two decades is threatening to curtail a rally in prices as record production expands inventories to the highest since at least 1984.
Supply will outpace demand by 539,000 metric tons, the most since 1993, according to Standard Bank Plc. Stockpiles of the metal used in brass and steel will reach 2.2 million tons, Barclays Capital estimates. Prices will drop 10 percent to $1,832 a ton this year, the median of 15 analyst and trader estimates compiled by Bloomberg shows. That may curb profit for Zug, Switzerland-based Xstrata Plc, the biggest producer.