Demand for commodities is always lumpy - consumers go through a phase of destocking where demand is limited and then they have to restock and you get high demand. Growth rates for zinc have been 2% so around 200-300k additional zinc metal needed. Even if we get to 1% that is still an addition 100k additional zinc units required.
The US trade deal tariff stuff is mostly noise - affects speculators in commodity markets Steel production & demand is still growing which will require zinc. LME Zinc is in backwardation and should attract additional zinc stocks however we are not seeing that.
Your analysis is incomplete and paints a much more bearish picture for zinc than the reality. It’s like looking at sales for skis during summer and concluding that demand for skis that year is low.
RVR Price at posting:
16.5¢ Sentiment: Buy Disclosure: Held
