Because the vast majority of zinc comes from a handful of countries, the market can be quite volatile. Things like a presidential election in Peru, a push for green energy in China, or a shortage of shipping containers in Australia can destabilize prices.
The steel industry in the United States enjoys a high degree of protection from the government. High import tariffs mean that most of the steel used in construction is produced domestically. When there are massive shocks to the industry (such as a new respiratory virus that infects 10% of the population), a unionized workforce keeps steel production relatively steady.
As of early June, the first nearby expiration for Western Spruce-Pine-Fir on the Chicago Mercantile Exchange (delivery in mid-July) is showing some clear choppiness in the softwood price. While it has had a downward trajectory since mid-May, there has been high volatility as well.
This year, the prices for cement are expected to increase by 3.2%, partially making up for the weak price growth of 2020. Producers have noted increases so far this year in various regions and hope to gain further traction after the COVID-19 pandemic stymied price increases last year.
