SunSirs: Consumption Was Weak, Hit by the US Dollar, the Price of Zinc Fell in Shock This Week

Zinc prices fell in shock this week

According to the data monitoring of SunSirs, as of September 26, the zinc price was 24,744 RMB/ton, and the single-day zinc price fell by 436 RMB/ton, a decrease of 1.73%; compared with the zinc price of 25,066 RMB/ton on September 18, a decrease of 1.28%. Zinc prices have fluctuated and consolidated recently, but on Monday, the metal market suffered a severe blow from the US dollar, and zinc prices fell sharply.

Base metal indexes fell

As the central banks of the United States, Europe and Africa raised interest rates, the dollar index continued to rise, and the dollar rose to a new high on Monday. A series of aggressive policies intensified the market's concerns about the global economic outlook, and the non-ferrous metal sector fell across the board. It can be seen from the base metal index of SunSirs that the base metal index on September 26 was 1,208 points, down 19 points from yesterday. The base metal sector fell, and the price of zinc fell sharply.

Zinc market demand was less than expected

Domestic special bonds of 500 billion yuan would be in place at the end of October. The traditional peak season "gold September, silver October" boosted consumption, and companies prepared inventory before the holiday. Many news showed that the demand for zinc has increased significantly. However, the purchasing performance of the spot market was flat, the downstream consumption support was weak, and the overall zinc market demand was lower than expected.

Market outlook

Analysts of SunSirs believe that the demand in the zinc market was lower than expected, and the support for the rise in zinc prices was weak. With the global central bank raising interest rates, macroeconomic expectations declined, base metal prices fell, and zinc prices followed suit. In the future, the supply and demand of the zinc market are relatively balanced, but the aggressive interest rate hike policy has exacerbated the market's worries about the outlook. The demand in the zinc market is expected to decline, and the rising support of zinc prices is weakened. It is expected that the zinc price will be adjusted weakly and fluctuated in the future.

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