Zinc price fluctuated and rose in February

According to the data monitoring of the Business News Agency, as of February 28, the zinc price was 23074 yuan/ton, down by 5.30% compared with the fluctuation of 24366 yuan/ton on February 1. The demand for increased inventory in the zinc market was less than expected, and the zinc price fell in February.

International zinc market

The tightening monetary policy of the Federal Reserve remains unchanged, the strength of the US dollar remains unchanged, the expectation of weak demand remains unchanged, and commodity prices fluctuate and fall; With the end of the peak heating and electricity consumption in Europe in winter, the operating rate of zinc smelting in Europe is expected to rise, the zinc inventory in London is expected to increase, and the supply of international zinc market is expected to increase; The international zinc market has sufficient supply and insufficient demand, and zinc price is under great pressure.

Domestic zinc market demand is expected to pick up

The domestic credit data released showed that China’s credit data in January exceeded expectations, and M2 growth rate exceeded expectations. The credit data met the market’s expectations for domestic economic recovery; The operating rate of zinc plating and die-casting zinc alloy has risen steadily, and the demand of zinc industry has warmed up; With the introduction of economic stimulus policies in many places in China, downstream demand has warmed up, and the rising momentum of zinc market has increased.

The domestic zinc market has sufficient supply

According to the results of incomplete output statistics, the output of zinc and zinc alloy of sample enterprises in January 2023 was 460000 tons, an increase of 1.3% on a year-on-year basis, an increase of 4000 tons on a month-on-month basis, and an increase of 0.6% on a month-on-month basis. The high level of zinc concentrate processing costs has been adjusted, the enthusiasm of zinc smelters remains, zinc smelters have resumed production, Henan Zinc Plant has been put into operation, the supply of zinc has increased, the social zinc inventory has accumulated, the output of domestic zinc market has increased, and the supply of zinc market is sufficient.

Aftermarket forecast

According to the data analyst of Business News Agency, the supply and demand of zinc market increased in February, but the demand growth was poor, and the zinc price fell in February. In the future, with the economic recovery, the demand of zinc market will continue to warm up, while the high price of zinc concentrate processing will fall, and the supply of zinc market will grow less than expected. The supply and demand of zinc market in the future will maintain a weak balance, and the expected weak shock of zinc price will stabilize.