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SunSirs: Chinese Zinc Prices Struggle to Rise

May 20 2020 08:37:39     SunSirs (Linda)

1. Price Trend

According to SunSirs data monitoring, the zinc market continued to pick up after the holiday, but the increase slowed down significantly, and the zinc price rose slightly. As of May 19, the spot price of zinc was 17,236.67 yuan / ton, a slight increase from the beginning of the month at 16,646.67 yuan / ton, a 3.54% increase. Although the zinc market was still strong in May, the overall upward trend slowed.

2. Market trend analysis

LME zinc inventory

As can be seen from the chart, the inventory of zinc ingots in the LME market fell in May, the inventory of the international zinc market decreased. The supply of the zinc market was stable, the demand of the international zinc market rose slowly, the international zinc price fluctuated and the international zinc market picked up, which was positive for the Chinese zinc market .

Shanghai zinc inventory in May

It can be seen from the chartthat after the holiday, zinc ingot stocks in the Shanghai futures market fell. The decline in futures stocks slowed down significantly, and Chinese zinc market inventories rose, the domestic zinc market outlook supply is sufficient, and supply and demand pressures are eased. Overall, the domestic zinc market has weakened, and the recovery of the zinc market has slowed down.

3. Outlook

SunSirs analysts believe that the zinc market inventory in the international market slowed down after May, and the impact of zinc market imports has decreased, which is good for the domestic zinc market. In the domestic zinc market, domestic infrastructure projects are still struggling, and the demand for zinc ingots has risen, but the sharp rise in zinc prices has increased the pressure on downstream purchases, downstream customers' enthusiasm for purchases has weakened, and zinc market inventories have slowed down. The mining processing fee continued to fall, the enthusiasm of zinc smelting enterprises to start work declined, and the zinc market supply declined. Generally speaking, the zinc market in the future market has sufficient momentum to increase, and zinc prices are still mainly in the future market, but the zinc price in the future market may increase or slow down. It is expected that the zinc price in the future market will fluctuate slightly.

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

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