Zink price forcast
The Financial Post reports in its Wednesday edition the Wellington WestCapital Markets is raising its metal price assumptions.The Post's Peter Koven, writing in Trading Desk, says Wellingtonanalysts point out that higher energy and acid prices are pushingoperating costs higher and increasing barriers to entry for newprojects. On the demand side, meanwhile, they argue that China andIndia have become more relevant in predicting future metal demand thanthe United States."China's GDP is only 24% net export driven, which underscores that muchof its appetite for metals is for internal consumption," they wrote ina note to clients.Then there are a number of other challenges in the industry. It alladds up to a secular bull market, and the analysts expect it to lastthrough at least 2012.Wellington West is now forecasting gold prices of $850 an ounce andsilver prices of $15.50 an ounce in each of 2008 and 2009,respectively. Copper is expected to cost $3.50 a pound in 2008 and$3.15 in 2009. The only metal they are not bullish on is zinc.Based on the new outlook, the analysts raised their target prices onfour companies -- Agnico-Eagle Mines, Aurizon Mines, CorrienteResources and Franco-Nevada.