Zinc Prices Surged as a Result to the US Sanctions

Zinc prices have recently shown an uptrend in the global market during the final weeks of December 2023. The US sanctions against the Russian Zinc mining majors led to a rise in the metal industry. The US sanctions, along with macroeconomic statistics (dollar value slumped, for instance.), together had caused a slight oscillation, which led to an uptrend in the zinc prices during December 2023.

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Elaborating further, the rapid decline in the US Dollar index caused the metals to be cheaper for the holders of other currencies. The non-ferrous metal market remained favourable while the prices rose, portraying a northward trend in the Zinc market. The sanction released by the Foreign Assets Control (OFAC), a subsidiary of the US Department of Commerce, was imposed on the Russian mining major Sviblov. Sviblov Group focuses on the gold mining industry in Russia. Additionally, the company also deals with mining and production of other metals, including Zinc.

The sanction imposed by the US affected Ozernoye, a company that is known as one of the world’s largest zinc mines functional under Svibolv groups, Russia. As a result of this sanction, the spot prices of Zinc metal on the London Metal Exchange rose by 1.4% during the final week of December 2023.

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According to Procurement Resource, the price trends of zinc metal in the global market experienced notable fluctuations, ending with an uptrend in the market in December 2023. The sanctions filed against the Russian Zinc market by the US Department of Commerce impacted the sudden rise in the non-ferrous metal industry. The prices rose, causing an uptrend in the costs of zinc metal in the global metal market.