The zinc price in the market is shooting up. According to the investors the price of zinc will continue to run high as some of the giants in the zinc mining industry is running low on supply as the demand increases.
Zinc is a vital base metal being used in many industrial activities starting from sunscreens to steel coatings in the car tires. The problem further increases as this particular base metal has very few substitutes. U.S Mint has initiated to reduce the company’s manufacturing cost, so as to increase the price for their zinc. As for the steel industry, zinc is a vital part of the industry as, the most vital metal used in the rust resistant process of steel making, in that case the steel makers are the worst affected by this phenomena as they buy about half of the zinc produced in the world.
The records show that, since 2007 this is the first time zinc steep this lower than the demand. An American multinational investment banking firm, Goldman Sachs, stated that, many miners would have to face closure as they would find it difficult to locate a new source of the metal with the current pricing. Until 2018 it will be difficult for the miners to cease the demand from industries and coin maker for zinc.
A metal strategist of the bank, Stephen Briggs stated that, the large mines all around the would rather soon close down, leaving a very few to replace them, which will be not even that big.
Mann Rasmussen, an analyst stated that, there are loads and loads of unrefined zinc available in China, which could be further refined and taken into the market. But at the same time Mr. Chevely of the Investec stated that, the dependence over Chinese zinc supply is unhealthy as the supply wouldn’t even diminish the need in the country alone.