Zinc prices were down 2.2% WoW despite inventory declines on the LME and the SHFE (Shanghai). China’s manufacturing activities in May were up both MoM and YoY.
We are maintaining our price forecasts. We are expecting stronger demand for base metals in H2-2021, amid an economic recovery post-pandemic. That said, as prices are still well above historic levels, we are expecting price corrections for base metals. We are not expecting a supply deficit for any of the mainstream base metals this year.
61.6% of Canada’s population has received at least one dose vs 56.9% at the same time last week. Canada overtook the U.K. last week, and is now only behind Israel, in terms of percentage of population with at least one dose. We are now expecting 75% of Canada’s population to have at least one dose, and 20% to be fully vaccinated, by next month (the previous estimate was August).
BNS reported its Q2 results last week. We are lowering our PCL forecast, and accordingly raising our EPS projection and fair value estimate on BNS.
Amazon announced its support for cannabis legalization. Recently released data by BDSA, an analytics company providing data on cannabis sales across Arizona, California, Colorado, Nevada and Oregon, showed record sales growth in April, ranging from 24% YoY in Oregon to 129% YoY in Nevada.
Health Canada added four new LP licenses, two in B.C., and two in ON, increasing the total number of issued licenses to 681. We maintain our belief that there will be consolidation within the sector.
