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SunSirs: International Zinc Price Drags on Chinese One

December 16 2019 10:12:47     SunSirs (Linda)

1. Price trend

According to the data monitoring of SunSirs, zinc prices were adjusted in December, and the zinc market recovered. As of December 13, the spot price of zinc was 18726.67RMB/ton, up 1.41% from 18466.67RMB/ton on December 1, down 13.68% year on year.

2. Market trend analysis

Zinc price fell in shock in LME futures market

It can be seen from the spot zinc price chart of LME that zinc price has fallen sharply in recent years, and the international market is short of zinc price, which has affected the domestic zinc market. Since December, the price of zinc in LME market has been fluctuating and stable, and the negative effect on domestic zinc price has weakened, but the overall recovery of domestic zinc market is still dragged down.

Zinc price in Shanghai futures market rose in December

From the zinc price of Shanghai futures market, it can be seen that since December, the domestic futures market has recovered and the futures zinc price has risen in shock, which is good for the spot market.

3. Future prospects

An analyst from SunSirs thinks that the main reason for the rise of zinc price in domestic futures market is that China's economy shows signs of recovery in November. In the spot market, with the recovery of the economy, the demand for zinc has increased, which is good for zinc price. However, the rise of zinc price in the spot market is still struggling. Under the condition of the recovery of demand and the temporary stability of supply, the performance of the spot zinc price is not ideal. The reason is that the price of zinc in China is largely affected by the price of zinc in the international market, while the price of zinc in the international market continues to fall, which has a great negative impact on the domestic zinc market. Generally speaking, the recovery of domestic macro-economic environment is bound to lead to the rise of zinc price, but the fall of international zinc price will drag down the rise of zinc price. The fall of international zinc price is not enough to change the rise and fall of China's zinc market. The spot zinc price is expected to rise in the future, but the increase is limited due to the impact of international zinc price.

Related lwasted companies: Nonfemet(000060), CHIHONG Zn&Ge(600497).

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