The latest data from the International Lead and Zinc Study Group also show that mine supply continued to increase in the first four months of this year, growing by 6.8%. Nevertheless, Australia's government commodities researcher, BREE, estimates global deficits of 190,000 tonnes in 2014 and 116,000 tonnes in 2015, as no new major mines are due to be commissioned to replace the lost output.
"People are asking questions about whether zinc has any further upside. We have been saying that the price has escaped the fundamentals. It's overextended and it's got a correction due," analyst Vivienne Lloyd at Macquarie in London told Reuters on Thursday.