SunSirs: Supply Increased, Demand Was Poor, and Zinc Prices Fluctuated and Fell This Week

Zinc prices fluctuated and fell this week

According to the Commodity Market Analysis System of SunSirs, as of August 14th, the zinc price was 20,410 RMB/ton, a decrease of 3.13% compared to the fluctuating zinc price of 21,070 RMB/ton on August 4th. The inventory of zinc ingots in the Shanghai futures market increased, the processing fees for zinc concentrates increased, the supply of zinc in the market increased, and the macroeconomic recovery was less than expected. The demand for zinc in the market was poor, and the bearish situation in the metal zinc market had increased. This week, zinc prices fluctuated and fell.

Zinc Ingot Inventory Increased in Shanghai Futures Market

From the statistical table of zinc ingot inventory in the Shanghai futures market, it can be seen that the inventory of zinc ingots in the Shanghai futures market had increased, and due to the increase in zinc concentrate processing fees, the supply of zinc in the market had steadily increased. The supply of zinc in the market had increased, and the downward pressure on the zinc market increased.

Poor demand in the zinc market

Affected by the rainstorm in the north, the construction of infrastructure and other related projects had been postponed, the orders of galvanized enterprises were weak, and the operating rate of enterprises was lower month on month. The US PPI data rebounded beyond expectations, the US dollar index surged, the non-ferrous metal market weakened, and the London zinc market fell; The real estate market had experienced losses in the first half of the year due to the phenomenon of "buying houses but not loans". In July, the real estate market did not show a significant improvement, and expectations of a rebound in demand in the zinc market weakened, resulting in weak spot trading.

Market outlook

According to data analysts from SunSirs, the processing fees in zinc concentrate increased, the zinc ingot inventory in the Shanghai futures market increased and an zinc supply in the market increased; In terms of demand, the macroeconomic recovery was poor, and the demand growth in the zinc market was not as expected. Both supply and demand in the zinc market had increased, but the growth was not as expected. The supply was stable and it is expected that the zinc price will be weak and consolidated in the future.

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