Blue Moon Metals Inc (BMOOF)

[Bassman101]

Zinc hits two-week high on shortages, gains in steel prices

http://reut.rs/2iHmNB0

By Eric Onstad

LONDON, Nov 22 (Reuters) - Zinc climbed to its highest in two weeks on Wednesday on persistent concern about shortages and after Chinese steel futures rallied.

The zinc market is tight, with treatment charges (TCs) at low levels, an indication that concentrate supplies are thin, said Robin Bhar, head of metals research at Societe Generale.

“I still think prices need to stay at this level to get more supply. Spot TCs are still low, they haven’t picked up, so there’s a need to incentivise more supply,” he said.

* STEEL RALLY: Zinc, mainly used for galvanizing steel, got support after Chinese steel futures rallied for a third straight session.

Sentiment on zinc was also bullish at the China Lead and Zinc Week gathering in Shenzhen, participants said.

* ZINC DEFICIT: The global zinc market deficit widened to 39,800 tonnes in September from a revised deficit of 38,700 tonnes in August, data showed.