Zinc has done quite well in the previous week, it has seen 7 percent of gains. Markets are anticipating a strong demand here, especially when China comes back from its Lunar New Year holiday.
Rahul Sharma, Director-India of International Zinc Association (IZA), said, “This year certainly being a roller coaster year for the financial and metals market because of pandemic so China consumes more than 50 percent of the global zinc production and now with China on holidays so base metal trading on the prominent metal exchanges has been quite with prices little change and trading volumes slight.”
“If we look at three-month base metal prices on the LME zinc was most active on the upside although volumes have been low which is not surprising with the Chinese market closed. Zinc metals continue to look strong but the key will be whether it can hold on to the gains or build on them with China on holiday.”
On zinc demand in India, he said, “India produces almost seven hundred thousand tonne of zinc per year, and zinc demand is approximately 850 thousand tonne of zinc each year. Also in this budget, our finance minister spoke about asset monetisation that includes modernisation of railways, NHAI asset monetisation projects, transmission line owned by this Power Grid Corporation so these sectors will consume a lot of galvanised steel, which eventually will increase zinc demand. So I foresee Indian zinc consumption to grow by 14-15 percent in 2021.”
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