Zinc Posts Strong Rallies from Lows, Will Gains Continue? SMM Interviews

SHANGHAI, Jan. 22 (SMM) – Zinc prices for March delivery in Shanghai Futures Exchange advanced 3.6% since last Thursday. 

What factors lie behind the strong gains? Will the rising trend continue? 

“Earlier declines in zinc market are plagued by tumbling oil and copper prices, and as the external market is stabilizing, zinc prices bounced back,” an analyst from Everbright Futures told SMM in an interview.  

Another analyst from Shanghai CIFCO Futures echoed the views, expecting zinc prices to return to trade around 16,500 yuan per tonne following recent buying at lows.  

“Trading inventories are also falling as buyers advanced pre-holiday stockpiling at lows,” added one analyst from Huatai Great Wall Futures, now eyeing whether or not zinc price will climb above 16,400-16,500 yuan per tonne in the short run.  

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