Zinc price trend
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According to the data monitoring of business agency, since August, the price of zinc has been fluctuating and rising. Before August 20, the price of zinc did not fall continuously in August. But 21 and 24 consecutive trading days of zinc prices fell, what does the zinc market foretell, whether the future market of zinc market can continue to rise?
From January to June 2020, the global zinc market will have an excess supply of 177000 tons
According to the report released by the world Bureau of Metal Statistics (WBMs), from January to June 2020, the global zinc market was oversupplied by 177000 tons, while in the whole year of 2019, there was a shortage of 74000 tons. During the period from January to June, inventory increased by 149000 tons, including a net increase of 70000 tons in Shanghai. From January to June, LME inventory increased to 71000 tons higher than that in December 2019. Affected by the epidemic situation, the global zinc market demand has declined seriously, and the inventory has increased significantly. The zinc market has insufficient upward momentum and great downward pressure.
LME market inventory
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As of August 24, the zinc ingot inventory in LME market was 225075 tons, which was significantly higher than 188050 tons at the beginning of the month (August 1). The serious overstocking of zinc ingot in the international market affects the further rise of zinc price in the international market, thus hindering the rise of domestic zinc market, which is unfavorable to the domestic zinc price.
Analysis, review and Prospect
Bai Jiaxin, an analyst at the business agency, said: from the statistical data, we can see that the global zinc market is seriously overstocked, and the supply of zinc ingots in the international market is seriously oversupply, which is bad for the domestic zinc market. With the resumption of production and work in the global economy, the demand for zinc market is getting warmer, and the price of zinc has an upward momentum. However, the backlog of zinc ingot inventory in the first half of the year will be listed on the market, which has a negative impact on the price of zinc, and there is insufficient support for the rise of zinc market. It is expected that the future zinc market will be stable.
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