Canada Zinc Metals Corp. V.CZX

Zinc supply deficits...

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Strong zinc market continues.....

Societe Generale expects the Zn market deficit at 350,000 t in 2017 and 2018 after a deficit of 200,000 t in 2016.

China's Zn imports jumped to above 573,000 t in 11M17--up 43% from 11M16. Zn shortages have led to a drawdown of inventories in LME-approved warehouses, which at 180,250 t are down more than 30% since last Oct17. Stocks in warehouses monitored by the Shanghai Futures Exchange at 77,383 t are down 60% since Mar17.

Provisional data reported to the ILZSG indicate that the global market for refined Zn metal was in deficit by 485 kt over 11M17 with total reported inventories decreasing by 320 kt over the same period. World refined Pb metal demand exceeded supply by 169 kt during 11M17. Over the same period total reported stock levels decreased by 33 kt.

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...dwindling inventories... driving up prices towards the peaks seen in 2007. Benchmark Zn on the LME hit $3,440/t this month, its highest in more than 10 years. Andrew Thomas, analyst at consultants Wood Mackenzie, expects Zn to rise to $4,000/t towards the end of the year and peak probably early in 2019. Wood Mackenzie expects the Zn market to see a deficit of 350,000 t in 2018 and a 150,000 t