Zinc prices rebound sharply from oversold levels

摘要

Zinc prices started to rebound on Thursday from the fresh multi-year lows of $1,673/tonne the previous day. Strong gains on Friday saw prices rebound $161/tonne, or 9.6%,to $1,834/tonne. Although that is impressive for two days work, let us not forget priceshave dropped $732/tonne from $2,405/tonne in early May. The tail end of last week sawa general rebound in metal prices, which was helped by a rebound in equity markets,but while equity markets have turned jittery again, zinc prices are holding up well. Theremay be many reasons for this: prices had become oversold, the Century and Lisheenmines are about to close, and reports emerged last week that the giant McArthur Rivermine in Australia may be forced to close too unless it improves its environmental record.