Zinc price struggles to rise in March

Zinc price trend

 

According to the data monitoring of business news agency, zinc price fluctuated and adjusted in March, and zinc market rose in struggle. As of March 31, the average price of zinc was 21766.67 yuan / ton, up 0.74% from 21606.67 yuan / ton on March 1.

 

China Purchasing Managers Index for March

 

According to the data released by the National Bureau of statistics, China’s Manufacturing Purchasing Managers’ index (PMI) was 51.9% in March, 1.3 percentage points higher than that of last month, and the manufacturing industry recovered. Both sides of supply and demand picked up at the same time, imports and exports returned to the boom range, and the macro economy was good. The demand of zinc market is sufficient, and the market of zinc market is generally good.

 

Social inventory of zinc ingots

 

According to the statistical data in the table, the social inventory of zinc city is high and stable, and the supply of zinc city is sufficient. In March, the inventory of zinc city declined slightly, the de inventory of zinc City intensified, and the rising power of zinc city in the future is greater.

 

Zinc processing fee

 

Due to the shortage of mine supply, the processing fee paid by the miner to the smelter for refining zinc decreased from $300 / t a year ago to $200 / T in 2021. China’s domestic zinc concentrate processing fee fell to 3600-4200 yuan / ton in March, the lowest level since September 2018, far lower than 6500 yuan / ton in early 2020. Lower processing fee may force zinc smelters to cut production. The output of zinc smelters decreased, the supply of zinc market decreased, and the market of zinc market rose.

 

Analysis summary and Prospect

 

Bai Jiaxin, an analyst at business news agency, said: compared with the rapid recovery of the domestic economy, the recovery of the EU economy was hindered by the epidemic, the global nonferrous plate was under pressure, and the domestic zinc market was weaker. However, the overall recovery of domestic economy is relatively fast, the decline of zinc market inventory is good for the zinc market, and the decline of zinc concentrate processing fee has also hit the enthusiasm of zinc smelting enterprises. The future output of zinc market is likely to decline. The supply of zinc market is generally sufficient, but the supply and demand are generally tight. Zinc market up support still exists. Zinc price is expected to rise slightly in the future, zinc market is cautiously optimistic.

PVA