Zinc Performance Outlook: Factors Influencing Prices in 2025

Zinc's strong 2024 performance driven by speculation raises concerns. Investors should consider the potential impact of U.S. policy changes and global supply dynamics for 2025.

Date: 17-01-2025

AI Rating: 5

Earnings Overview

The report does not contain any explicit mention of Earnings Per Share (EPS), making it difficult to evaluate the impact of zinc prices on company earnings.

Revenue Growth

There is no direct data regarding revenue growth for companies related to zinc production. However, the anticipated improvements in permitted projects could potentially boost revenues in the long term.

Net Income

The analysis lacks specific insights into net income for zinc-related companies, such as South32, which may be considered impacted by the zinc market dynamics.

Profit Margins

No information is provided regarding profit margins, such as gross, operating, or net, for the companies involved in zinc production.

Free Cash Flow

No mention of free cash flow is made, so the financial health of companies cannot be evaluated in this regard.

Return on Equity

The report does not include any data on the return on equity, leaving an incomplete picture of the financial performance of zinc-focused companies.

Market Dynamics

The report discusses the balance of supply and demand in the zinc market, mentioning that weak demand was met with weak mining supply. This equilibrium is critical for investors as it indicates stability in the market.

Predictions for 2025

The expectation that mining supply will increase by 1.9 percent year over year and that demand will grow at a modest rate is a positive sign. Additionally, upside predictions for zinc pricing from analysts suggest a potential increase to $3,300 per metric ton, signaling improved market conditions.

Geopolitical Factors

Changes in U.S. administration, particularly related to tariffs and housing initiatives, could significantly sway demand for zinc. Trump's return could create opportunities or challenges that might affect stock prices of related companies.

Stocks: SHTLF