If you like trading on supply/demand fundamentals, zinc, lead, and copper are all worth a look.

According to new analysis from MiningNews, which pulled together several industry sources, said that demand exceeded supply in the first quarter for the three metals.

For lead, the International Lead and Zinc Study Group (ILZSG) indicated that global refined lead metal demand exceeded supply by 39,000 tonnes during the first four months of 2019.

Over the same period, total reported stock levels decreased by 21,000 tonnes.

For zinc, the global market for refined zinc metal was in deficit by 97,000 tonnes over the first four months of the year — with total reported inventories increasing by 10,000 tonnes.

While global zinc mine production actually grew by 1.5 percent, the amount of refined zinc being produced fell — resulting in an overall reduction of 2.3 percent.

Meanwhile, the International Copper Study Group (ICSG) said preliminary data indicated that global copper mine production was down about 1.3 percent in the first quarter of this year.

The ICSG noted that while several countries experienced production increases, these were largely offset by declines in two major producer countries, namely Chile and Indonesia.

The trade imbalance suffered by copper is one of the key reasons why Blackrock has tipped copper to break out of its current slumber and rebound.


This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.