Unfortunately, the year 2017 has not proved as lucky for Zinc yet.LME Zinc has slipped to fourth position with gains of mere 1.5 percent while MCX Zinc prices declined by 2 percent so far this year. Steel galvanization being the most important demand driver for Zinc, falling demand of Steel in China is pinching the non-ferrous metal. The mainland nation pledged output cuts in early 2016 to cut 150 million tonnes of excess capacity by 2020 in a crackdown on polluting industries. LME story is no different either as Zinc stocks there have plunged by around 20 percent this year.Besides, the International Lead and Zinc Study Group anticipated in its latest annual forecast that global demand for refined zinc metal will exceed supply by 226,000 tonnes in 2017. So, we expect Zinc prices to gain momentum towards Rs.180-185/kg mark in the near term.

Source: Economic Times May 23, 2017 14:15 UTC