While zinc demand was mixed in the first half of the year, inventories are low.
The USA and Europe held up quite well in terms of zinc demand. China has weakened. The overall low zinc inventories have led to record zinc premiums. Zinc demand is mainly driven by infrastructure projects, especially in China, and things are happening here. After the Corona-related disruptions, zinc supply recovered in 2021, with an increase of around seven percent. For Chinese zinc, a small increase in supply is expected thanks to some new projects. China ranks first in zinc mining, Peru second. Environmental regulations are demanding on zinc mines and interruptions had reduced zinc supply. Smelter operating rates are expected to increase in the second half of 2022 and in 2023, with a low growth rate assumed.
High energy prices are a cause for concern at European steel mills. As a result, smelters have been temporarily put on hold. Continuing high energy prices are generally expected. The further development of the construction and automotive sectors, where zinc plays an important role as a corrosion inhibitor, is particularly crucial for the zinc price. One argument in favor of zinc is that there are only a few new mining projects.
In the zinc sector, Griffin Mining - https://www.youtube.com/watch?v=KgcS9L245MI - is the largest zinc producer in China. The company owns 88.8 percent of the producing Caijiaying zinc-gold mine. Another important metal for the automotive and construction industries is copper. When the economy is on the upswing, there is also more demand for copper.
Copper as well as zinc and also gold and silver can be found, for example, in Denarius Metals' - https://www.youtube.com/watch?v=0vavK-uZyxQ - main project, the Lomero project in Spain. Two other projects are also part of the Denarius Metals portfolio.
Current corporate information and press releases from Griffin Mining (- https://www.resource-capital.ch/en/companies/griffin-mining-ltd/ -) and Denarius Metals (- https://www.resource-capital.ch/en/companies/denarius-metals-corp/ -).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer:
The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
The USA and Europe held up quite well in terms of zinc demand. China has weakened. The overall low zinc inventories have led to record zinc premiums. Zinc demand is mainly driven by infrastructure projects, especially in China, and things are happening here. After the Corona-related disruptions, zinc supply recovered in 2021, with an increase of around seven percent. For Chinese zinc, a small increase in supply is expected thanks to some new projects. China ranks first in zinc mining, Peru second. Environmental regulations are demanding on zinc mines and interruptions had reduced zinc supply. Smelter operating rates are expected to increase in the second half of 2022 and in 2023, with a low growth rate assumed.
High energy prices are a cause for concern at European steel mills. As a result, smelters have been temporarily put on hold. Continuing high energy prices are generally expected. The further development of the construction and automotive sectors, where zinc plays an important role as a corrosion inhibitor, is particularly crucial for the zinc price. One argument in favor of zinc is that there are only a few new mining projects.
In the zinc sector, Griffin Mining - https://www.youtube.com/watch?v=KgcS9L245MI - is the largest zinc producer in China. The company owns 88.8 percent of the producing Caijiaying zinc-gold mine. Another important metal for the automotive and construction industries is copper. When the economy is on the upswing, there is also more demand for copper.
Copper as well as zinc and also gold and silver can be found, for example, in Denarius Metals' - https://www.youtube.com/watch?v=0vavK-uZyxQ - main project, the Lomero project in Spain. Two other projects are also part of the Denarius Metals portfolio.
Current corporate information and press releases from Griffin Mining (- https://www.resource-capital.ch/en/companies/griffin-mining-ltd/ -) and Denarius Metals (- https://www.resource-capital.ch/en/companies/denarius-metals-corp/ -).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer:
The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
