| Zinc, Nickel & Steel Performance Zinc: Zinc maintained a weak tone throughout 2007 as the global deficit eased to 15,000 tonnes. Zinc began consolidating in late 2007 ahead of index funds' portfolio rebalancing and a recovery was seen in early 2008 following supply disruptions in China, weakness in dollar and record energy prices. However, prices fell again as smelters restored normalcy, demand turned sluggish and market started expecting a surplus in 2008. LME zinc hit new lows in July moving below $1,750 a tonne.
Nickel: Nickel traded sideways to slightly weak during the last one year on worries about weaker than expected demand from the stainless steel sector. Nickel prices were also hit after China introduced a substitute known as nickel pig iron. In end- 2007, nickel suffered most as much-expected demand from steel makers disappointed. Nickel tried to recover in early 2008 ahead of index fund rebalancing, supply disruptions and record high oil prices, but weak demand and stainless steel producers' cutbacks led to record low prices.
Steel: Last year, steel prices nearly doubled amid expensive raw material costs, including of coal and iron ore, and surging energy prices and ocean freight costs. Steel staged smart gains recently on robust demand from China and India. Despite concerns about a global slowdown, steelheavy industries, including auto and shipbuilding, showed solid growth. Moreover the greenback's record low levels helped lift steel prices.
Back to More Stories |
Vol. 1 