SunSirs: Positive News Increased, and Zinc Prices Continued to Rise after a Slight Drop This Week

Zinc prices continued to rise this week

According to the Commodity Market Analysis System of SunSirs, as of June 16, the zinc price was 20,622 RMB/ton, an increase of 2.46% compared to the zinc price of 20,126 RMB/ton on June 9 last weekend; The zinc price had increased by 5.86% compared to 19,480 RMB/ton on June 1st. The positive news in the zinc market increased, and zinc prices fluctuated and rose this week.

International zinc market rebounded

The Federal Reserve suspended interest rate hikes in June, the U.S. Dollar Index fell to a new four week low, nonferrous metals became more emotional, zinc prices rose in London at night, the international macroeconomic environment recovered, and the zinc market was good.

Sweden's Boliden suspended production of the largest zinc mine in Europe, and the Ronnskar smelter had shut down due to a fire, leading to a decrease in supply expectations for the European zinc market and increased support for the rise of the zinc market.

Domestic MLF "interest rate reduction"

On June 15th, the central bank announced that in order to maintain the reasonable and sufficient liquidity of the banking system, the central bank launched a 7-day reverse repurchase operation of 2 billion RMB and a 1-year MLF operation of 237 billion RMB in the open market. The winning interest rates were 1.9% and 2.65%, respectively, compared to 1.9% and 2.75% last time. The MLF interest rate cut once again releases a positive policy signal, which helps to stabilize expectations and boost confidence. The macroeconomic expectation is expected to rebound, and the domestic zinc market is expected to rebound, increasing the driving force for the rise of domestic zinc prices.

Market outlook

According to the data analysts of SunSirs, the U.S. Dollar Index hit a new low in one month, the European zinc mines and zinc smelters started to decline, the supply of zinc fell, and the international zinc market recovered; The domestic central bank lowered interest rates, and the domestic economic market is expected to rebound, increasing the momentum for zinc price increases. Overall, the expected decrease in supply and the expected rebound in demand led to an increase in positive news for the zinc market, and the price of zinc will fluctuate and rise in the future.

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