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 2023

On a quarterly and a year-to-date basis, zinc was the worst performer among other base metals, falling by 20%, as construction-heavy materials took the heat from a lack of China's stimulus clarity. There are tentative signs that European smelters could begin production again this year; however, declining prices are further dimming prospects of a full-fledged return, and Q4 production is again under threat of energy prices...

Metals

In the previous quarter, expectations shifted from a pause in the central bank tightening cycle to further rate increases in July and potentially later in Q4 2023. As we move away from central bank-centric rhetoric, economic growth and consumer performance will be key in driving the risk sentiment across the board. Still, China's stimulus outlook remains critical to the longer-term narrative for metals this quarter. Sentiment has been improving as signs emerged that regulators are working to follow through on the promises made at the most recent Politburo meeting. However, markets remain cautious about the scale of support, and any positive news seems short-lived. As a result, the positive stimulus is more likely to solidify support levels than boost bullish sentiment in the near term.

Q3 2023