Copper and Zinc stocks dangerously low
metalmarkets.org.uk
Teck Cominco, the Canadian diversified mining and metals company, has reported that global refined copper and zinc stocks are historically low.
According to Andrew Roebuck, the group’s marketing manager, stocks of the metals are at a point where they would be unable to absorb the effect of an increase in consumption or disruptions to supply.
Teck Cominco estimates that mined copper production has reduced by 600,000 tonnes so far this year, with refined copper stocks declining 22,000 tonnes, or 12%.
At the same time, analysts have estimated that refined copper stocks were deficient by 318,000 tonne from the end of July this year, while stocks of refined zinc are currently at less than half of their 30-year average.
The price of zinc has increased 5% to an average $1.54 lb over the past 12 months.
China imported zinc in September because the country’s domestic price was $450 tonne higher than the LME.
However, the situation has now reversed, with the LME price now higher than China’s domestic zinc price, and Mr Roebuck is forecasting that “China may revert to be an exporter again” of zinc. |
