Fastmarkets analyst James Moore and reporter Ana de Liz size up the zinc market ahead of LME Week, which begins Monday October 11.
LME zinc prices have underperformed relative to the rest of the base metals complex in 2021. This is partly the result of zinc outperforming in 2020, but it also reflects the expectation of significant mine capacity additions that were set to keep the refined market oversupplied.While mine production has rebounded strongly from year-ago volumes, delays to key projects such as Glencore's Zhairem mine in Kazakhstan and Lundin's Neves Corvo expansion in Portugal have kept output below pre-pandemic levels. But these, and other capacity additions in Canada, Brazil and Mexico, will provide additional supplies in the year ahead.How quickly the increasing concentrate supply translates into greater metal availability in the refined market will be the key for 2022. For the moment,...