SunSirs: Zinc Prices Fluctuated Frequently in May and Showed a Downward Trend
June 03 2025 10:55:56
According to the commodity market analysis system of SunSirs, as of May 30, the zinc price was 22,738 RMB/ton, down 0.72% from the zinc price of 22,904 RMB/ton on May 1. Zinc prices in May showed a trend of frequent fluctuations and continued downward trend.
On the macro level, the new round of tariff policies in the United States suppressed export demand (market concerns eased after the statement of the Ministry of Commerce of China). The tight supply chain in the copper market was transmitted to the zinc market (the shortage of copper concentrate triggered the linkage effect of basic metals).
Raw materials
Cost support weakened, and the processing cost of zinc concentrate fell to the range of 21,500-22,000 RMB/ton (driven by the decline in energy prices), weakening the bottom support of prices.
Supply and demand
Supply side: zinc inventory of Shanghai Futures Exchange decreased to 2,053 tons, but zinc inventory of LME simultaneously decreased to 170,325 tons, reflecting the global supply contraction.
Demand side: downstream galvanizing, alloy and other industries purchase mainly for rigid demand, and inventory turnover days are compressed to 7-10 days (Zhejiang and Guangdong regions).
Market forecast
From a fundamental point of view, the current market presents a pattern of increased supply and weakened demand. With the gradual increase in zinc ingot production, it is expected that social inventory of zinc ingots may begin to accumulate. This change may weaken the support for zinc prices, which in turn leads to a certain downward pressure on zinc prices.
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