Fitch Revises Downward 2020 Zinc Price Forecast

SEATTLE (Scrap Monster): The zinc price forecast for 2020 was revised from $2,450/tonne to $2,250/tonne by Fitch. The latest market report said that market forces on account of the coronavirus epidemic outbreak is likely to impact prices of the metal in the short term.

The zinc prices, which had hit the peak of $2,454/tonne, after phase one trade deal between the U.S. and China, have been on a steady decline, falling below $2,000/tonne on the London Metal Exchange (LME). Factory shutdowns on account of ongoing coronavirus outbreak have led to further decline in prices. The global zinc inventories have recorded significant surge, following notable decline in demand.

Fitch expects prices to remain subdued in the forthcoming weeks, as zinc producers continue to take precautionary steps in the wake of global spread of the virus. However, the ramping up of economic activity in China during the second half of 2020 is likely to lead to improved market conditions for the metal, said Fitch.

The zinc prices are expected to average around $2,250/tonne in 2020, significantly lower than the 2019 average of $2,507/tonne. Also, global primary zinc output is expected to record marginal growth by 2.8% during the current year.

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