More evidence that zinc is the next major commodity to watch, with prices hitting a 35-month on rising motor vehicle demand
More evidence that zinc is the next major commodity to watch, with prices hitting a 35-month on rising motor vehicle demand. Bloomberg reports that zinc prices have risen to a 35-month high on falling inventories, amid speculation that increasing motor vehicle sales in China and the U.S. will boost metal use. Zinc stockpiles monitored by the London Metal Exchange have dropped 29% this year to the lowest since December 2010. Vehicle sales in China climbed 14% in June, an industry group said yesterday. In the U.S., new-vehicle demand surged in May and June, Bloomberg Industries said. Demand, particularly in the U.S., probably picked up, Patricia Mohr, a commodity market specialist at Scotiabank Group in Toronto, said in a telephone interview. We're seeing a bit of a recovery in industrial production in the U.S., largely linked to strong auto production. It's probably reasonably good in China as well.
Gavin has been a senior resources analyst following the mining and energy sectors for the past 25 years, working with Intersuisse and Fat Prophets. He is also the Executive Director, Mining & Metals with Independent Investment Research (IIR).