Supply Shortage Worries Push Zinc Prices to New Highs

This week, the zinc market rose first and then fell. As of April 24, the zinc price was 28,494 CNY/ton, an increase of 1.51% from the 28,070 CNY/ton zinc price on April 17 last weekend. On April 20, the domestic spot zinc price was 28,754 CNY/ton, and the zinc commodity index on April 20 was 164.25 points, setting a new historical high in the cycle (note: the cycle refers to 2011-09-01 to date). The zinc market remained strong this week, with the price of zinc hitting a record high in the cycle.

From the inventory data of zinc ingots in the LME market, it can be seen that since April, the inventory of zinc ingots in the LME market has continued to decline, the number of registered warehouse receipts has continued to decline, and the number of cancelled warehouse receipts has increased significantly. The supply of zinc in the market decreased, and the upward momentum of zinc prices increased. The number of cancelled warehouse receipts is much larger than the number of registered warehouse receipts, and the zinc market supply is expected to decline in the future. It is expected that the supply of zinc in the future market is expected to decline, and the price of zinc fluctuates up.

The energy crisis continues to affect the supply of zinc market

The conflict between Russia and Ukraine continues to ferment, the price of natural gas and other energy sources in Europe has skyrocketed, and the cost of zinc smelting has risen, affecting the supply of the zinc market.

Poor logistics and transportation impact zinc market demand

Due to the continuous prevention and control in China, the poor logistics and transportation in various places have an impact on the normal operation of the industrial chain supply, affecting the production of enterprises in various places. The output of zinc smelting enterprises has declined, and the downstream automobile industry and other enterprises have stopped production and reduced production. The pressure is higher and the upward momentum is still there.

market outlook

Analysts of the business community believe that the European energy crisis still exists, the European zinc smelters are expected to reduce production, and the zinc market supply is expected to decline; the domestic zinc industry chain starts to decline, and the zinc market supply and demand are both weak, which stimulates the volatile rise in zinc prices, and zinc downstream customers are afraid of high sentiment Strong, the zinc market demand declined, and the downward pressure on the zinc market remained. In general, the supply and demand in the zinc market are weak in the future, and there are still more positives and negatives in the zinc market. It is expected that the zinc price will fluctuate slightly and rise.