Zinc price trend stopped falling and stabilized
In June, the price of zinc fluctuated and fell. From 16 to 21, the price of zinc dropped continuously. As of June 22, the price of zinc was RMB 21986.67/ton, which was a drop of 4.96% from the price of RMB 23,133.33 on June 1 and compared with that of June 16. The price of zinc fell by 4.46%.
International Zinc Market Quotes
Statistics released by the Kazakhstan Bureau of Statistics show that the refined zinc output in April 2021 was 25,941 tons, a decrease of 5.3% from 27,391 tons in March; the cumulative output in the first four months of 2021 was 104,389 tons, a year-on-year decrease of 2.6%. The report data released by the World Bureau of Metal Statistics (WBMS) shows that the global zinc market will have a shortage of 38,000 tons from January to April 2021. In April 2021, the global zinc market consumption was 1,196,600 tons. In April 2021, the global zinc market output was 1,146,200 tons. As of the end of April 2021, the global zinc market inventory was 151,000 tons. In 21 years, the global zinc market output has decreased, and the global zinc market demand has intensified, and the zinc market has an upward momentum. As the first source country of China’s zinc imports, Kazakhstan’s refined zinc production has declined, China’s zinc imports are difficult, and the zinc market has increased pressure.
According to the latest customs data released by the General Administration of Customs, China imported 40,700 tons of refined zinc in April 2020, an increase of 11.6% month-on-month and an increase of 24.2% year-on-year; exports of 7,000 tons, an increase of 16.2% month-on-month and a year-on-year decrease of 85.1%; net imports of zinc in April 40,000 tons of ingots. From January to April 2020, a total of 174,200 tons were imported, a year-on-year increase of 51.6%. Zinc imports increased, and the domestic zinc market demand was strong, supported by the rise in the zinc market.
Analysis
The country’s dumping of reserves stimulated domestic zinc prices to plummet continuously. However, from the perspective of zinc market supply and demand, the global zinc market is in short supply, and the zinc market is in short supply. The domestic zinc market demand is strong. The overall zinc market is in short supply. The room for price drop is limited, and the state sells reserves to make up for the shortage of domestic zinc market demand. However, the overall decline of the zinc market is limited. It is expected that the zinc market will fluctuate and stabilize in the future.
Related listed companies: Zhongjin Lingnan (000060), Chihong Zinc Germanium (600497).
