According to the monitoring of the commodity market analysis system of Shengyi Society, as of March 14th, the price of 0 # zinc was 24216 yuan/ton, a slight increase of 2.36% compared to the zinc price of 23660 yuan/ton on March 3rd.

This week’s market analysis

This week, the trend of zinc prices is relatively strong. With the start of production by enterprises in March and the gradual recovery of output, zinc ingots have fluctuated and adjusted within the range, with an overall slight increase.

Raw material end

As the previously suspended mines gradually resume production, domestic zinc ore production has increased month on month, and the supply from the mining end remains loose. To repair profit margins, refineries continue to increase their processing fee (TC) quotes. At present, the domestic zinc ore price in March has significantly increased compared to the level in February. Refineries mainly purchase domestically produced minerals, and it is expected that processing fees will continue to rise in the future.

Supply and demand side

Since March, with the recovery of processing fees, the profit margin of refineries has been effectively restored, production enthusiasm has increased, and production has shown a steady increase trend. In terms of the end consumer market, with the continuous recovery of the economy and the gradual recovery of demand, the operating rate of galvanizing and zinc oxide sectors has significantly increased, and market activity has strengthened. However, in the field of die-casting zinc alloys, due to the high inventory levels of finished products in some large factories, in order to avoid inventory backlog and capital occupation, they have chosen to temporarily suspend production, which has to some extent affected the overall operating rate of the sector.

comprehensive analysis

The macroeconomic environment is showing a relatively warm trend, providing strong support for the zinc market and driving the zinc price center to gradually shift upward. However, considering the continuous improvement of processing fees (TC), the supply side shows an increasing trend, which will have a certain suppressive effect on zinc prices. With the gradual digestion of macro emotions, the market’s expectations for future zinc prices will also tend to be rational. It is expected that zinc prices will be under pressure in the short term.