The Alchemist, Issue 29: The Alchemist looks at how zinc should benefit from rising commodity prices, production cuts, minimal new mine development and growth in demand. There is only limited opportunity for equity exposure.
The zinc market ended 2016 in deficit, with its spot price having risen 61% over the course of the year; this represented a dramatic turnaround for perhaps the most unloved of the base metals during the commodities downturn.
This issue of The Alchemist examines the reasons why this has happened and whether the current strong fundamentals are likely to be sustained over the medium term. It also reviews what the opportunities are for investors to obtain exposure to zinc miners.