Price trend
According to the monitoring of the commodity market analysis system of SunSirs, as of March 28th, the price of 0 # zinc was 23,820 RMB/ton, a decrease of 1.36% from the zinc price of 24,148 RMB/ton on March 24th.
This week's market analysis
This week's weak adjustment in spot zinc prices has led to active downstream purchasing.
Raw material end
With the continuous influx of imported zinc ore, the raw material inventory of refineries remained at a high level, and the domestic zinc ore production was gradually returning to normal operation, indicating a significant increase in zinc ore supply. In view of this, refineries tended to maintain stability or increase prices towards subsequent processing costs.
Supply and demand side
With the recovery of refined zinc ore processing fees on the supply side and high production enthusiasm from refineries, it is expected that production will increase.
On the demand side, the end consumer market continued to recover. The weak trend of zinc prices has prompted downstream terminal enterprises to seize the opportunity of low prices to replenish inventory, resulting in an increase in the inventory of galvanized raw materials. Northern enterprises that had previously reduced production due to environmental factors have resumed production, effectively driving the overall operating rate to rebound.
Inventory side
Downstream procurement was relatively active, and social inventory was in a state of destocking.
Market outlook
The increasing trend of supply side increment was becoming increasingly significant, while demand was still in the stage of gradual recovery, and downstream enterprises were mainly purchasing at low prices. The state of low-level destocking may be difficult to sustain, and the fundamental support was not strong. In the short term, zinc prices are expected to mainly consolidate at high levels.
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