Zinc - Market trends and analysis

摘要

Volatility is picking up as zinc prices rebounded sharply last week after the previous pull-back. It is still the QE tapering fixation that is moving the markets, in both directions. Last week, US jobs data was somewhat disappointing but was taken as a sign that the Fed may ease the pace of tapering, which would relieve the pressure on emerging markets and related assets, including the base metals. Overall, however, the bounce in prices already appears to have run out of momentum. Overall, and like bellwether copper, we feel that zinc's latest rally was merely a knee-jerk reaction to having had such a long run of down days - ten in total in zinc's case. As such, we would not be surprised to see prices pull back once more to test support around $1,950/tonne.