Although most commodity prices have jumped up this year – albeit from some very low starting points – it is rare for base metals to move so neatly in concert. That’s because at any one stage, the supply and demand factors governing a metal’s market can shift according to very specific whims. Projected car sales drop in Europe; platinum takes a hit. Japan announces plans for new nuclear reactors; uranium spot prices surge. Of course, China’s position as the leading consumer of most metals means that any contraction or growth in domestic construction and demand remains the single most important factor determining pricing in any commodity with an industrial application.
The central importance of iron ore and copper to the major diversified miners, as well as the vast array of gold miners listed in London, sometimes means other commodities, including those that are closer to balancing, get overlooked. As the table below highlights, that shouldn’t be the case given how much they matter to the largest miners in London. Here we look at three base metals which are once again attracting investors’ attention.
Zinc oversupply corrected