Zinc price in November
| Gamma-PGA (gamma polyglutamic acid) |
According to the Commodity Market Analysis System of Shengyi Society, as of November 30th, the zinc price was 25720 yuan/ton, a significant increase of 2.24% compared to the zinc price of 25156 yuan/ton on November 1st. The zinc price gradually rose in November amidst fluctuations.
Zinc prices rose slightly in November, and continued to rise in October. The overall center of gravity of zinc prices has shifted upward.
According to the Commodity Market Analysis System of Shengyi Society, zinc prices will experience a pullback in June and July 2024, followed by a rise in August and a slight increase in September, October, and November. The average zinc price in November is at a high level for the year.
Supply and demand side
This month, the tight supply situation of zinc ore is still difficult to ease. According to market monitoring, the tight supply of raw materials has led to an increase in costs for smelters, and some smelters such as Chihong, Shengtun, and Baiyin are expected to reduce their production. Smelting output is expected to remain low. At the same time, the seasonal reduction in production in northern mines has further exacerbated the tight supply situation. Although there are reports that mining supply will increase after the first quarter of 2025, the tight supply situation will continue in the short term.
On the demand side, the zinc market demand this month has shown a low season characteristic. As the end of the year approaches, the traditional peak consumption season is gradually coming to an end, and downstream demand has weakened. Especially in the northern region, due to the impact of the heating season, downstream enterprises have experienced phased production cuts and shutdowns, leading to further decline in demand. The operating rates of industries such as galvanizing and die-casting zinc alloys have not been able to maintain high levels, and the overall demand performance has fallen short of expectations.
The price of zinc is showing a fluctuating trend under the dual pressure of tight supply and low demand season. Under the influence of the continuous decline in zinc warehouse receipts in Shanghai and the high position of recent month contracts, the bullish sentiment of funds has been strong, and zinc prices have risen at one point. At the end of the month, due to the uncertainty of macro sentiment, zinc prices fluctuated weakly. Overall, the fluctuation range of zinc prices this month is relatively broad, but the overall increase is limited.
Future forecast
It is expected that zinc prices will continue to be affected by the dual effects of tight supply and low demand season. In the short term, the shortage of raw materials on the supply side is difficult to alleviate, but the increase in production and import volume of smelters will gradually ease the supply pressure. On the demand side, with the end of the heating season and downstream enterprises resuming work, demand is expected to gradually rebound. Expected to fluctuate in the short term.
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