The bear market in silver is poised to turn around the fortunes for zinc as miners reduce production and end the seven-year glut in the industrial metal.
Silver makes up 40 percent of the value of byproducts from zinc mining and helps reduce costs for mineral companies, HSBC Holdings Plc says. Its 33 percent slump in the past seven months added about $130 a metric ton, or 7 percent, to average zinc production costs, according to CRU, the London-based research company. Zinc demand will exceed supply by about 4,000 tons in 2014, from a 44,800-ton surplus this year, the average of 14 analyst estimates compiled by Bloomberg show.
Companies from Terramin Australia Ltd. (TZN) to Yukon Zinc Corp. said they are curbing unprofitable operations. Prices will rise 3.6 percent to an average of $1,952.50 in the fourth quarter and $2,000 in the following three months, according to the median of as many as 14 analyst estimates. Silver fell as investors lost faith in precious metals as a store of value. Citigroup Inc. is forecasting the lowest annual average in five years in 2014.
“A falling silver price effectively raises the cost curve in the zinc industry,” said Andrew Keen, the global head of metals and mining equity research at HSBC in London, who has covered metals markets for more than two decades. “It doesn’t have to fall as far as it used to to trigger closures of mine capacity.”
Original post
- English (UK)
- English (India)
- English (Canada)
- English (Australia)
- English (South Africa)
- English (Philippines)
- English (Nigeria)
- Deutsch
- Español (España)
- Español (México)
- Français
- Italiano
- Nederlands
- Português (Portugal)
- Polski
- Português (Brasil)
- Русский
- Türkçe
- العربية
- Ελληνικά
- Svenska
- Suomi
- עברית
- 日本語
- 한국어
- 简体中文
- 繁體中文
- Bahasa Indonesia
- Bahasa Melayu
- ไทย
- Tiếng Việt
- हिंदी
Silver Decline Becomes Zinc Gains
Published 07/25/2013, 05:32 AM
Updated 07/09/2023, 06:31 AM
Silver Decline Becomes Zinc Gains
Latest comments
Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.