Zinc prices fell sharply this week

According to the data monitoring of the Business News Agency, the zinc price was 22,998 RMB/ton as of February 13, down 4.26% from the price of 24,022 RMB/ton on February 5 at last weekend. Futures zinc inventories increased significantly, while demand remained weak, and zinc prices fell in shock this week.

LME zinc ingot inventory surged this week

From the LME inventory statistics table, LME zinc ingot inventory surged this week. As of February 10, LME's zinc inventory was 26,250 tons, a sharp increase from 16,225 tons of zinc ingot inventory on February 6. London's zinc inventory increased, and the London zinc price fell sharply on last Friday. With the end of the winter heating peak in Europe, the operating rate of zinc smelting in Europe was expected to rise, and the supply of international zinc market was expected to increase; The supply of zinc was sufficient and the downward pressure was high.

Supply and demand situation of domestic zinc market

According to the incomplete output statistics, the output of zinc and zinc alloy of sample enterprises in January 2023 was 460,000 tons, an increase of 1.3% year on year, an increase of 4,000 tons month on month, and an increase of 0.6% in daily average output. The output of domestic zinc market increased, and the supply of zinc market was sufficient. After the Spring Festival, Henan Zinc Plant was put into operation, the supply of zinc market increased, and the social zinc inventory accumulated. Many places in China introduced economic stimulus policies, and the downstream demand recovered, but the demand was still weak at this stage. The supply of zinc market was increasing, and the demand was weak. The downward pressure of zinc market was high.

Market outlook

According to the data analyst of the Business News Agency, in terms of supply, LME zinc inventory increased significantly this week, the supply of zinc in Europe increased, and the supply of domestic zinc market was stable; In terms of demand, the downstream demand had warmed up, but it was less than expected, and the overall zinc market demand was still weak. In the future, it is difficult to change the situation of weak demand and supply increase in the zinc market in the short term, and the pressure of zinc price decline is increased. It is expected that the zinc price will fall in shock.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com