Zinc Hits 19-Month High Amid Supply Worries, Demand Recovery
- SMM says Chinese zinc output declines amid falling margins
- European zinc and lead demand is recovering, Trafigura says
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Zinc rallied to the highest since April 2019, lifted by concerns over falling Chinese production and as hopes for a U.S. stimulus deal buoyed market sentiment.
Refined zinc output in China, the top producer, fell to 562,300 tons last month, down by 6,900 tons from October, Shanghai Metals Market said, citing a monthly survey of smelters. Production is expected to drop further in December as falling processing fees crimp margins, according to the researcher. Treatment charges for Chinese smelters to process zinc concentrate slumped to the lowest level in more than two years.