MARKET TALK: LME Zinc Downside Limited Given Low Stocks

The downside risk to LME zinc prices is limited, especially given the still very low level of inventories, says Goldman Sachs. Forecasts zinc to hold a $3,000 a metric ton to $3,500/ton range for the next 12 months. Adds that strong supply growth in response to recent high prices will also likely keep the zinc market in surplus, although restarts of previously idled mine capacity have already largely been priced in. LME zinc trades at $3,524/ton, +2% on the day.