Zinc got off to a rough start in 2016, but it ended the year as the best-performing metal on the LME. A zinc bull market may be upon us as market participants turn optimistic in 2017. John Kaiser of Kaiser Research is one of them.

Kaiser Predicts Major Zinc Bull Market in 2017 and Beyond


John Kaiser believes we are facing a major zinc bull market. He is predicting the zinc price will follow copper in that it will stay elevated.

John Kaiser, explains,

“Zinc demand grows by the GDP growth rate, type of thing, there is a crunch coming, where there will not be enough supply available.”

With respect to China, Kaiser explains,

“China has plateaued. Chinese zinc supply comes from many small deposits. Many of them very polluting.” Also,

“Last year they started installing water quality stations at around 350 cities as a strategy to shame the local beaucrats into finding out where this poison is coming from and shut it down. This will ultimately curtail a lot of Chinese zinc supply. This is the big surprise that is lurking in the wings.”