Increasing Zinc Market Price in Osaka

Market price of electrolytic zinc is increasing to 315-320 yen per kilogram in Osaka under the surging offshore market.The price hit record US$ 2,603 per tonne at settlement of London Metal Exchange on Monday. The price increased by around 32% from the recent bottom at just more than US$ 2,000 in late February. Japanese official zinc ingot price increased to 347,000 yen per tonne on March 24, which is the highest level in 16 years. The world zinc supply keeps tight under the shortage of the ore supply. The market price surged after labors entered strike at Mexican copper and zinc smelter of Grupo Mexico. The higher price is also supported by the record low inventory at less than 300,000 tonnes held by LME. Japanese zinc demand is firm for automotive galvanizing steel while the demand for construction materials is in inventory adjustment stage before the end of the fiscal year to March. A market source said the demand will recover the high-level in April after the adjustment.