Zinc Outlook & Market Analysis - Sucden Financial > Metals Outlook > Market Insights

Expert zinc market insights

Our quarterly zinc outlook is published in our Quarterly Metals Report, which covers base, precious and ferrous metals. The impact of supply and demand fundamentals and macroeconomic implications for the zinc futures and spot prices are analysed. Our research team produce a zinc price range forecast as part of the report.

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Zinc Outlook – Q3 2024

Like other commodities, zinc followed the upward trend of copper as speculative traders increased their bullish positions. This trend reversed in July, as zinc followed copper to a multi-month low. Still, with fundamental tightness in the Chinese concentrate segment, zinc is more prone to short-term volatility spikes on the upside. We see robust support at $2,650/t, which could cause prices to reverse this trend.

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As we head into Q3 2024, the markets are dealing with a different reality than what was initially expected at the beginning of the year. With Biden stepping out of the US Presidential Race, all eyes are likely to stay focused on the US until November. Additionally, there is a growing case for an increasing number of interest rate cuts this year, with major banks expected to start the cutting cycle by the end of this quarter. While this should help alleviate some of the pressures felt by the commodity space, China's muted economic performance is weighing on the base metals’ narrative. From September onward, we expect macroeconomic factors to relieve some of the pressures on the commodity market, leading to a modest increase in the latter part of Q3. We expect Q4 to bring greater market volatility.

Q3 2024