Reuters reported that amongst the base metals traded on the London Metal Exchange (LME) in 2013, zinc was the best performer. Thus far, 2014 is also going well for the metal.
The news outlet states that the reason why is revealed in the conference call given by Nyrstar NV (EBR:NYR) upon the release of its Q4 2013 results:
‘We have been anticipating a structural change on the supply side of zinc fundamentals for a while and I think it’s pretty fair to say that that is currently happening and happening in a very pronounced way across the sector,’ said Bob Katsiouleris, Nyrstar’s SVP for marketing, sourcing and sales.
For ‘structural change’, read the well-flagged closure of some of the world’s largest zinc mines.