Trade war increases pressure on zinc

EVERYONE suffers in a war but in a trade war some metals suffer more than others, with zinc the base metal being hit hardest.

Trade war increases pressure on zinc Trade war increases pressure on zinc Trade war increases pressure on zinc Trade war increases pressure on zinc Trade war increases pressure on zinc

Any decline in demand for galvanised steel flows directly into demand for zinc

The problem of being heavily exposed to steel, where 60% of the world's zinc is consumed as a steel galvanising agent to inhibit rusting, means that any decline in demand for galvanised steel flows directly into demand for zinc.

In the increasingly bitter exchange of tit-for-tat tariff increases between the US and China it is steel which has become a weapon, crimping demand growth.

But the real problem for zinc lies in the fact that demand had already been slowing before the first shots were fired in the trade war with pressure on the price being compounded by increasing supply from old mines re-starting and new mines being developed.

The net effect is a squeeze that has knocked 25% off the zinc price over the past six months and with further falls expected ov...