Market mixed on anticipated zinc deficit

May 30, 2014 | 05:17 PM | Saranya Kapur

Tags  zinc, zinc prices, zinc deficit, International Lead and Zinc Study Group, ILZSG, Paul Gait, Bernstein Investment Research and Management, zinc alloys Société Générale

NEW YORK — An expected zinc deficit wll likely boost prices to new highs this year, which could push consumers away from zinc applications, some analysts said.

However, others believe markets have adapted to take substitution into account.

"Zinc demand is price elastic. Rising zinc prices would see an increased threat of substitution in the zinc market," analysts at the Paris-based banking group Société Générale SA said. "For example, pure hot-rolled zinc is under threat from a zinc magnesium alloy, while in the automotive industry a move away from steel towards aluminium could also undermine zinc demand."....





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