Mine supply in zinc remains very constrained. Zinc is the one metal that deserves a re-rating based on physical demand and supply characteristics alone.
The economic background to metals is therefore supportive, but metals also have the additional price driver of extensive activity by investment funds. Ongoing investment into commodities by broad-based global funds remains very strong.
People are positive on the demand side of these metals as the global economy grows. Falling inventories also help.
Exits from the baskets could have a disproportionately larger impact on the less-liquid metal markets.