UNITED KINGDOM May 20 2016 10:14 AM
LONDON (Scrap Register): Goldman Sachs has raised its six and twelve month price forecasts for zinc to $2,100 a metric ton from $1,700, while the three-month call rose to $2,000 from $1,800 a metric ton.
Goldman Sachs has raised its forecasts for the next year on tightening supply and robust demand in China, highlighting its positive prospects in contrast to the very bearish outlook seen for all other base metals.
However, zinc for three-month delivery was at $1,868 a tonne on the London Metal Exchange on Thursday.
“We view zinc as the bullish exception in the metals space, and remain very bearish on the outlook for the other base metals prices, most notably copper and aluminum, where we see very strong supply growth in the second half. Zinc has by far the most bullish supply-side dynamic,” said the analysts at Goldman Sachs.