Zinc prices fluctuate and rise this week

According to the Commodity Market Analysis System of the Business Society, as of August 7th, the zinc price was 20962 yuan/ton, an increase of 2.04% compared to the fluctuating zinc price of 20542 yuan/ton on July 30th. The maintenance of zinc smelting enterprises has increased, the processing cost of zinc concentrate has increased, and the metal zinc market is positive. This week, zinc prices have fluctuated and increased.

Weakened Supply Expectation Meets Less Than Expected Demand

This week, the domestic zinc concentrate processing fee has slightly increased, with Shaoguan region increasing by 100 yuan/metal ton to 5350 yuan/metal ton, Chenzhou region increasing by 100 yuan/metal ton to 5300 yuan/metal ton, Zhuzhou increasing by 300 yuan/metal ton to 5600 yuan/metal ton, Hechi region increasing by 300 yuan/metal ton to 5300 yuan/metal ton, and Kunming increasing by 100 yuan/metal ton to 5200 yuan/metal ton. In July 2023, China’s refined zinc production was 551100 tons, a decrease of 14000 tons or 0.26% compared to the previous month, a year-on-year increase of 15.79%, slightly exceeding the expected value. It is expected that the domestic refined zinc production will increase by 16000 tons month on month to 552700 tons in August 2023, a year-on-year increase of 19.43%. The maintenance of zinc smelting enterprises has increased, and the expected growth of refined zinc supply has weakened.

Affected by the rainstorm in the north, the construction of infrastructure and other related projects has been postponed, the orders of galvanized enterprises are weak, and the operating rate of enterprises is lower month on month. Die-casting enterprises are operating at a low level, while zinc oxide enterprises are also slightly lower in terms of production compared to the previous month. The production of galvanized steel plates in large domestic steel mills has increased month on month. Overall, domestic demand is relatively stable. However, due to the impact of rainstorm weather, the demand of zinc city is less than expected.

Future Market Forecast

According to data analysts from Business Society, there has been an increase in maintenance for zinc smelting enterprises, an increase in zinc concentrate processing fees, an expected decline in refined zinc production, and a weakening of zinc market supply; In terms of demand, due to the impact of typhoon weather, the demand growth in the zinc market is not as expected. In the future, both supply and demand in the zinc market have shown varying growth, but the growth has not been as expected. Zinc prices have fluctuated and risen, but their sustained support is limited. It is expected that zinc prices will fluctuate and consolidate at high levels in the future.