Patricia Mohr, vice-president economics and commodity market specialist at Scotiabank believes zinc “will be the next big base metal play for investors.” She forecasts prices will average US$0.94 per lb in 2014 — with most of the gain in the second half of the year — and climb to US$1.30-1.40 per lb in 2015. Last year zinc prices averaged US$0.87 per lb.
Mohr cites two major reasons for her bullish outlook in her latest edition of Scotiabank's Commodity Price Index. First, that “gains in world mine production over the next four to five years will likely fall behind global demand growth,” which she puts at 4.7% per year between 2012 and 2017.
In addition, Mohr argues that the major end-users of primary zinc in galvanized steel such as the construction and car industries “are picking up.” …
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