ZINC PRICE RISE STOPPED AT 2000 DOLLARS PER TON

The notice of Glencore take-over to Xstrata is in the root course of zinc and aluminium price increase in LME. Since end October, both non ferrous metals, and also copper, has shown a sharp price increase on continuous basis.

With Zinc over 2.000 dollars per ton; aluminium at 2.100 dollars per ton and copper over 8.000, signs start about the non sustainability of the price ride.

It will be very interesting to observe if Glencore-Xstrata is capable to substain non ferrous metals prices at actual levels.

Steel Blog considers that no for two reasons:

Reason 1
There are not conditions in EU27 nor also in Asia and NA economies to support price rises.

Reason 2
Experienced executivies in mining business leaving Xstrata after the merge will permit to restore market competition in some way.