According to the monitoring of the commodity market analysis system of Shengyi Society, as of April 11th, the price of 0 # zinc was 22720 yuan/ton, a decrease of 0.94% from the zinc price of 22936 yuan/ton on April 7th.
This week’s market analysis
Zinc prices have been weak this week, fluctuating and falling.
Raw material end
During April, mines in northern China were still in the stage of resuming production, which led to a gradual increase in domestic zinc concentrate production. Looking back at March, the zinc concentrate import window was basically closed. Based on this situation, it is expected that the quantity of imported zinc concentrate will decrease in April. In this context, it is important to pay close attention to the arrival dynamics of zinc concentrates that have already locked in prices when the import window is opened in the early stage. Overall, the domestic supply of zinc concentrate remained relatively loose in April, and there is a possibility of further increase in zinc concentrate processing fees.
Supply and demand side
Despite the downward trend in zinc prices, both domestic and imported zinc concentrate processing fees are currently at a high level. At the same time, the by-product income is considerable, and the overall zinc price remains relatively high. Under the combination of multiple factors, domestic smelters have basically achieved profitability, with high production enthusiasm and sustained high operating rates. From the production data, the domestic refined zinc production in March achieved a month on month increase. Looking ahead to April, based on the current favorable production situation and market environment, it is expected that the domestic refined zinc production will continue to grow month on month.
On the demand side, zinc prices have shown a downward trend, and downstream enterprises have keenly captured this price fluctuation, with a strong willingness to replenish inventory at low prices. At the beginning of the week, there was a significant increase in price operations and delivery behavior, resulting in a steady increase in raw material inventory in the factory.
Inventory end
The total inventory of zinc ingots has decreased compared to April 7th. LME zinc inventory has decreased compared to last week.
comprehensive analysis
At present, although zinc inventory levels both domestically and internationally are in a relatively low range, considering the market’s expectation of a significant increase in future zinc supply and the many uncertain factors brought about by changes in the macroeconomic environment, zinc prices may continue to fluctuate downward in the future due to multiple negative factors.
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