The incredible shrinking Zn "surplus"...Deutsche Bank Cuts Forecast Zinc Surplus on China Output Losses
By Brett Foley
Feb. 29 (Bloomberg) -- Deutsche Bank AG, Germany's biggest
bank, cut its forecast 2008 market surplus for zinc by 85 percent
on expected production losses in China, the world's largest
producer.
Supply of the metal used to galvanize steel will beat demand
by 50,000 metric tons this year, down from an earlier estimate of
330,000 tons, Deutsche analysts led by Joel Crane in New York,
wrote today in a report.
Production cuts in China ``will significantly reduce what
was supposed to be a large global market surplus,'' the analysts
wrote.
The bank also cut its forecast surplus for 2009 to 369,000
tons from an earlier estimate of 530,000 tons.