SunSirs: Zinc prices rose first and then fell

1. Price trend

According to the monitoring of SunSirs data, after the New Year's Day, the zinc price rose first and then fell, and the overall zinc price fluctuated. As of January 19, the spot price of zinc was 18,063.33RMB/ton, which was an increase of 1.36% from the beginning of the year (January 1), which was 1,353.33RMB/ton, a year-on-year decrease of 14.19%.

2. Market trend analysis

Domestic zinc market

After the New Year's Day, the zinc market is mainly divided into two phases. From January 1 to January 8, zinc prices rose sharply. Due to the preparation of the Spring Festival, the zinc market experienced a temporary rise in demand and zinc prices rose sharply; January 9 On January 19th, the zinc price fluctuated and fell. As manufacturers finished stocking, zinc prices lost their support for rising, and the zinc price fluctuated. The zinc market rose, the supply of zinc ingots increased, and the zinc market's rising momentum weakened.

International LME Market Quotes

The zinc price of the LME market rose after the New Year's Day, and the increase in international zinc prices supported the domestic zinc market.

Zinc concentrate processing fee

Zinc concentrate processing fees fell slightly, but overall zinc concentrate processing fees are still high, processing fee prices are high, zinc ingot costs are high, zinc prices have limited room for decline, and zinc prices have a greater driving force.

3. Outlook

SunSirs analysts believe that after New Year's Day, zinc concentrate processing fees are still high, zinc smelting enterprises are more motivated to start, sufficient zinc ingot supply, and more zinc ingot inventory, which will have a negative effect on the zinc market; Stocking, zinc companies raise zinc prices, but the overall zinc market transactions are cold, zinc prices are not enough motivation to rise; with the end of the Spring Festival stocking, zinc price pressure increased, zinc price shocks fell. In terms of the market outlook, the rise in international zinc prices is positive for the domestic zinc market. From the perspective of supply and demand, the zinc market has recently been adequately supplied, demand is cold, and zinc prices are not motivated to increase. There may be a short supply in the city, and a seller market may appear in the zinc market next week. There is still room for zinc prices to rise next week. Zinc prices are expected to fluctuate next week.

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

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