Zinc growth seen slowing as world markets weaken

The Zn market should have a relatively quiet year in 2001 with the London Metal Exchange price averaging 49 cents/lb, off from 2000's 51.2 cent average, said Jim Lennon, commodities analyst with Macquarie Bank, London. Zinc's growth of the past will slow in 2001 because of destocking that has exacerbated the demand slowdown caused by the slowing economy. Weakening auto sales, a declining constuction market and generally lower galvanized steel demand, not only in the US but also in Europe and Japan, will keep overall demand growth at 1.1% in 2001, he said.