The price of zinc first rose and then fell this week

This week, the price of zinc rose first and then fell. The price of zinc fell for two consecutive days on September 14th and 15th. As of September 15th, the zinc price was 22810.00 yuan/ton, a decrease of 0.36% compared with the 22893.33 yuan/ton zinc price on September 7, and an increase of 0.87% compared to the 22,613.33 yuan/ton zinc price on September 1. In September, zinc prices rose first and then fell, and the overall zinc market fluctuated to maintain stability.

September zinc futures spot basis

As of September 14, 2021, the maximum basis for zinc (Yangtze River Nonferrous) 180 days is 850.00, the minimum is 360.00, and the average is 630.24. The maximum basis for 90 days is 850.00, the minimum is 560.00, and the average is 716.02. Zinc's main basis in September fluctuated and adjusted between 645-780. The overall trend of the zinc futures spot market tends to be the same, and the futures spot market is less divergent.

Environmental protection key inspectors non-ferrous industries

The Ministry of Ecology and Environment held a regular August press conference on August 26. News spokesperson Liu Youbin introduced that the second round of the fourth batch of central ecological and environmental protection inspectors has been fully launched. Starting on the 26th, the 7 central ecological and environmental protection inspection teams have carried out a period of about 1 month for two central enterprises in Jilin, Shandong, Hubei, Guangdong, and Sichuan, China Nonferrous Mining Group Co., Ltd. and China National Gold Group Co., Ltd. Inspectors stationed at work. In addition to key provinces, two non-ferrous industry central enterprises have been stationed in this inspection. Environmental protection inspectors focused on central enterprises, and non-ferrous industry enterprises started to reduce their work, which stimulated the non-ferrous sector to rise.

Overview and outlook

Affected by the central environmental protection inspection team stationed in two non-ferrous industry central enterprises, the non-ferrous sector generally rose in September, stimulating the price increase in the zinc market, but the balance of supply and demand in the zinc market has not been broken, the trend of the zinc market has not changed, and the main zinc basis is relatively stable. With the continuous introduction of national reserves of zinc into the market, the support for the increase in the zinc market caused by environmental protection has weakened, the price of zinc has fallen, and the zinc market has returned to stability. Zinc prices are expected to fluctuate and stabilize in the future.

Related listed companies: Zhongjin Lingnan (000060), Chihong Zinc Germanium (600497).

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