bloomberg note on rare earths - last sentenceZINC: Zinc Rebounds as Metals Rise Amid Supply Concerns, China Easing
(Bloomberg) -- Zinc in London rebounded from the worst monthly loss since February last year as falling prices triggered concerns over possible supply cuts. Other metals mostly rose amid signs of an easing cash crunch in China. Zinc-treatment charges have fallen to the lowest in more than two years after prices of the metal used to galvanize steel sank. That threatens to widen supply curtailments as smelters lose money, according to Jinrui Futures Co. Zinc is the weakest performer this year among the six main base metals, and prices ended last week at their lowest in three months after inventories surged in London. The metal’s relative abundance was highlighted last week by Goldman Sachs Group Inc., which listed zinc as one of only two main raw material markets in which supply is currently topping demand. Nickel led most metals higher after the People’s Bank of China injected funds in an effort to avoid a liquidity squeeze. It followed manufacturing data that missed estimates and suggested China’s recovery -- one of the bright spots in the global economy -- is being hampered by efforts to curb Covid-19. Investors are also monitoring the situation in Myanmar. The seizure of power by the military, and the declaration of a state of emergency, might threaten the supply of base metals and rare earths from the Southeast Asian country.