Zinc futures are currently trading close to a three-month high, hovering around $3,000 per tonne. This surge is largely attributed to renewed optimism stemming from China's extensive stimulus measures designed to invigorate its slowing economy. The People's Bank of China has unveiled its most significant stimulus package since the pandemic, which entails lowering borrowing costs, injecting additional liquidity into the financial system, and easing the mortgage rayment burden for households. These strategic moves have fostered confidence in the prospects of stronger demand for metals from China, the world's leading consumer.
On the supply side, Swedish miner Boliden has postponed the expansion of its Odda zinc smelter in Norway, which is now anticipated to reach completion in 2025, further tightening potential future supplies.
Since the beginning of 2024, zinc has risen by $443.50/MT, or 16.69%, based on trading from a contract for difference (CFD) that reflects the benchmark market for this commodity. Projections indicate zinc could trade at approximately $2,955.23/MT by the end of this quarter, according to global macro models and analyst expectations. Looking ahead, estimates suggest it could reach as high as $3,137.16 within the next 12 months.