Raw materials. Zinc soars to stratospheric heights. The price of the metal is indeed trading at its highest since 2007. It has passed the mark of 3,600 dollars (3,100 euros) per tonne on the London Metal Exchange (LME), signing an increase of nearly 30% since the beginning. of the year. Institutional investors, the “goofs”, are betting on zinc.
However, do not believe that this sudden outbreak is linked to the reopening of bars and restaurants, put on hold during the coronavirus pandemic. If the regulars have reconnected with the little black or the glass at the counter, nothing to panic the stock counters. Especially since often, the famous “zinc”, is none other than tin or stainless steel.
The speculative flame that sets the bluish metal ablaze is, in fact, fueled by the energy crisis. With a paradox. The reduced gas flow has propelled zinc to new heights. The laws of the market are not those of physics… Gas, electricity, oil, coal, all energy sources are undergoing spectacular price increases. An outbreak that burns the fingers of industrialists. Some have even been forced to place a foundry or rolling mill under an extinguisher.
Buyer fever
This forced slowdown affects both China and Europe. Take the example of the company Nyrstar, one of the major zinc producers, which has announced that it will halve the speed of three of its European sites in the face of rising energy costs. In Europe, the gas bill has exploded against the backdrop of an economic recovery and limited stocks. Nothing like it for still blowing on the embers and heating the zinc to white. The movement had already been well initiated by the downturn in Chinese factories caused by repeated power cuts since the end of August. The pressure on the coal supply, the price of which has jumped, puts these companies on alternating current.
Other metals are brought to a boil in the crucible of speculation. The price of copper has returned to above the $ 10,000 per tonne mark. A historic milestone already crossed in May. Friday, October 15, it was trading at more than $ 10,200 per tonne on the LME. The rapid melting of stocks of red metal while demand remains strong worries the markets. Aluminum, very greedy in energy resources for its manufacture, is in tune with copper. It is trading at record highs over $ 3,000 per tonne. Likewise for nickel.
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