On the LME, a ton of zinc traded at 4,260.50 dollars on Friday around 4:30 p.m., once morest 4,339 dollars the previous Friday at the close and 4,435 dollars on Monday.
The price of zinc on the London Metal exchange (LME) fell slightly over the week, following hitting a new high on Monday since its all-time high in early March, propelled by supply threats due to the soaring cost of zinc. electricity.
“European zinc smelters have already been struggling for months with high energy prices which are driving up their production costs,” said Daniel Briesemann, an analyst at Commerzbank.
If European foundries had already announced in October that they were reducing their production accordingly, Mr Briesemann believes that “there is also a latent risk that other foundries will reduce their production” in turn.
“The zinc market is very tight, even without further production cuts,” he continues. Commezbank also reports a continued decline in zinc stocks in LME warehouses, which have now fallen to their lowest level since July 2020.
“Everything leads us to believe that the price of zinc will remain at a high level for the time being,” concludes the analyst.
On the LME, a ton of zinc for delivery in three months traded at 4,260.50 dollars on Friday around 2:30 p.m. GMT (4:30 p.m. in Paris), once morest 4,339 dollars the previous Friday at the close and 4,435 dollars on Monday. , a highest since March 8, its all-time high.
The sugar rises
Sugar prices rose over the week, reaching their highest level in four months in New York, boosted by strong demand from India.
“The price of raw sugar has exceeded [jeudi] the 20 cents per pound mark for the first time since the end of November 2021”, comments Cartsen Fritsch, of Commerzbank.
“This might be a response to reports coming from India, the world’s largest sugar consumer, where demand is expected to rise sharply this year following the lifting of COVID restrictions,” he continues.
Indian sugar exports are similarly expected to hit a record high for 2021-2022, according to the analyst.
In addition, “Brazil might also have a better production of sugar cane this year”, explains Jack Scoville, analyst of Price Group. Brazil is the largest cane producer in the world.
“The latest drop in oil prices might encourage sugar mills in this country to produce a little more sugar than ethanol”, continues Carsten Fritsch, who nevertheless specifies that the “price level of ethanol in Brazil remains very attractive “.
The high level of oil prices encourages producers to transform part of their harvest into ethanol, which reduces the quantity of sugar on the market and drives up prices.
In New York, a pound of raw sugar for delivery next May was worth 20.32 cents, once morest 19.37 cents seven days earlier.
In London, a ton of white sugar for delivery the same month was worth 557.80 dollars once morest 538.50 dollars the previous Friday at the close.
gold hesitates
The price of gold rose slightly over the week, supported by investors’ concerns regarding an unstable geopolitical situation, but weighed down by the prospect of a tightening of US monetary policy.
“The continuation of the war in Ukraine benefits gold, a safe haven par excellence”, explains Rupert Rowling, analyst at Kinesis Money.
Vladimir Putin will focus his attacks in Ukraine on the separatist areas of Donbass to seek a “victory” for May 9, the anniversary for Russia of the capitulation of Nazi Germany in 1945, estimated Friday his French counterpart Emmanuel Macron.
But the price of gold is also influenced by US monetary policy.
As the price of gold is fixed in dollars, the prospect of a tightening of the Federal Reserve (Fed), which benefits the greenback, makes the price of gold relatively higher for investors using other currencies.
Moreover, the prospect of a tightening of monetary policy makes government bonds, also a safe haven, more profitable, reducing the attractiveness of gold, a metal with no return.
“The price of gold should continue to evolve horizontally for a while, as long as there is no escalation of the conflict in Ukraine or, on the contrary, progress on the peace negotiations”, judges Mr. Rowling.
An ounce of gold traded for 1,946.50 dollars, up moderately from its cost at the end of trading the previous Friday, at 1,925.68 dollars.
