Rahul Sharma, director-India at International Zinc Association, on Monday, said that zinc prices may reach $4000 per tonne if the energy crisis persists in Europe and China.
The shares of metal companies soared on October 18 amid higher prices of base metals globally, which has come as a boon for metal companies. An uptick in metal prices will push realisations higher and in turn improve the profitability of metal firms.
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Sharma attributed the surge in zinc prices to supply disruptions in Europe resulting from the reduced output from smelters amid soaring electricity costs. He, therefore, anticipates that in the short-term zinc prices might reach $4,000 if the energy crisis persists in Europe and China.
“Strong zinc demand and lower inventory at the London Metal Exchange (LME) have already driven zinc prices higher this quarter,” Sharma told CNBC-TV18.
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He said that in this year and especially this quarter, there has been a spurt in base metals prices and the metals market has strongly rebounded after the COVID-19 pandemic. It appears that zinc prices may still go higher, he added.
For the entire interview, watch the video