Supply risk might buoy prices

Among base metals, zinc was the flavour of 2016, with prices up 60% due to a demand-supply mismatch

After an eventful 2016, the new  year is likely to remain positive for base metals and energy, following a reduction in supplies, as major producers resort to output cuts. Also, after a weak beginning, the rally in base metals and energy in the second half of 2016 suggests the global industrial economy is limping back to growth, which should further aid prices.

Among base metals, zinc was the flavour of 2016, with prices up 60 per cent due to a demand-supply mismatch built over the past two years. The US President-elect’s announcement to spend $1 trillion on infrastructure boosted metal