long term bullish fundamentals for zinc

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long term bullish fundamentals for zinc

posted on Oct 22, 2010 10:33AM

According to the International Zinc and Metal Study Group, global zinc consumption is due to rise 740 tonnes (7%) in 2010 while mine production is predicted to rise only 623 tonnes (5.5%).

Zinc is an infrastructure commodity with no viable commercial substitutes. It is the key ingredient in galvanized steel. China imports about 15,000 tonnes of zinc every month. In 2010, China's zinc consumption is forecast to rise to 5.4 million metric tonnes.

Zinc demand is harnessed to the construction industry. While U.S. housing starts are flat, the BRIC (Brazil, Russia, India, China) construction market is growing at an annualised rate of 11%.