Additional opinion on Zinc Friday December 13, 2013 1:07 PM
TD Securities looks for prices of most base metals to trader higher than current levels next year. “But, not all metals will do equally well as they all will have very different supply/demand fundamentals driving them,” TDS says. “Supply constraints and rising industrial demand in China -- which may include more intensive use of galvanization in the nation’s automotive sector -- and increasingly but more modestly in the Western world make zinc and lead our favorite metals into 2015. While copper is expected to be above current levels for much of 2014, we do see a material downside risk in the latter part of the year, if supply starts outpacing demand as projected. In sharp contrast and despite an improved demand environment, large inventories and continued surpluses make us reluctant to take long aluminum and nickel positions.” TDS’ average 2014 price forecasts, in metric tons, include: copper, $7,093; zinc, $2,188; lead, $2,315; nickel, $16,810; and aluminum, $1,874.
Best wishes,
Soccer