According to the data monitoring of the business society, the zinc price fluctuated and stabilized this week, and the zinc market stabilized. As of May 23, the price of zinc was 25504 RMB/ton, down 0.10% from 25530 RMB/ton on May 16 at the beginning of last week; Compared with May 1 at the beginning of the month, the price of zinc was 27742 RMB/ton, down 8.07%. The supply of zinc market recovered slowly, the demand was poor, and the zinc price fluctuated and stabilized this week.

Zinc ingot inventory in LME market continued to decline

It can be seen from the zinc ingot inventory data of LME market that the zinc ingot inventory in LME market fluctuated and stabilized this week, the number of registered warehouse receipts increased sharply, and the number of cancelled warehouse receipts decreased significantly. The supply of zinc increased and the demand slowly warmed up. The driving force for the rise of zinc price is still under great downward pressure.

Policies to stimulate the recovery of demand in zinc City

On May 23, the State Council held an executive meeting, which introduced a number of measures to stabilize the economy, including a phased reduction of 60 billion yuan in the purchase tax of some passenger vehicles, and the policy intensity exceeded expectations. In addition, the meeting also mentioned a number of policies conducive to the recovery and development of the automotive industry, such as stabilizing the industrial chain supply chain, optimizing the policy of returning to work and reaching production capacity, and the bank enterprise linkage extension of half a year's principal and interest repayment of the 90 billion yuan truck loan issued by the central automobile enterprises. A number of economic stimulus measures have revived the economy and the demand of zinc city has warmed up. However, due to the fact that the details and implementation time window of the current policy have not been announced, under the environment of the downward impact of the epidemic on macroeconomic growth, the sales volume of automobile and other industries may be lower than expected, and the speed of factory resumption of production is difficult to meet the expectations.

Future forecast

SunSirs analysts believe that the supply of zinc in the global zinc market has picked up slowly this week, the inventory of zinc ingots in LME market has decreased, the registered warehouse receipts have increased and the cancelled warehouse receipts have decreased, and the overall supply and demand of zinc in the world have both warmed up; In terms of demand, the resumption of production and work in China has been promoted one after another, but the demand growth of zinc city is less than expected. In the future, the supply and demand of zinc market increased slowly, and the shock of zinc price stabilized.

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