ZINC The base metal. News and Views. Symbol Zn Message Board

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Gold/Mining/Energy : ZINC The base metal. News and Views. Symbol Zn

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From: Jirobe	7/26/2009 8:56:11 AM
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China demand, destocking and smelter starts to aid zinc - Macquarie steelguru.com Sunday, 26 Jul 2009 Market analysts from Macquarie Research predicted that reignited zinc demand from China, as well as an end to destocking and a series of smelter restarts in the Asian giant will converge to keep zinc prices at or above their current levels for the rest of the year. The Analyst said that although the global economic crisis temporarily derailed demand in China along with the rest of the world, the Asian powerhouse's appetite for zinc is back stronger than ever. The analysts added that "The main Chinese end use markets for most resource commodities that we cover have performed very strongly in. Floor space under construction and car production are both up by around 15% year on year.” Analysts said that since China has regrouped, its zinc demand will continue to recover in the second half, they predicted, particularly from the country's construction, home appliance and automotive sectors. As a result, we expect to see Chinese real zinc demand grow by 8-10% year on year for 2009 compared with 8% growth year on year in 2008. The analysts also theorized that zinc will benefit from what appears to be substantial de stocking of galvanized steel in that country, a product that accounts for 50% of Chinese first use zinc demand. China's destocking is evidenced by the fact that its end-use markets are growing at a faster clip than its galvanized steel output. They said that "An end to galvanized steel destocking, together with some restocking, would be a plausible and very bullish scenario for zinc going into 2010.” (Sourced from Platts)

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