Zinc prices have fluctuated and fallen this week

According to the Commodity Market Analysis System of Shengyishe, as of March 25th, the zinc price was 21100 yuan/ton, a fluctuation decrease of 1.06% compared to the zinc price of 21326 yuan/ton on March 18th. The import volume of zinc concentrate decreased on a month on month basis, with a tight supply of zinc concentrate and a decrease in processing fees. The supply of zinc in the market was poor, and demand was weak, resulting in a volatile decline in zinc prices this week.

Tight supply of zinc concentrate

According to statistics from the General Administration of Customs, the import volume of zinc concentrate in China in January 2024 was 395900 tons, a decrease of 10.4% month on month and 8.18% year-on-year. In February 2024, the import volume of zinc concentrate was 251200 tons, a decrease of 36.56% month on month and 46.69% year-on-year. The cumulative import volume of zinc concentrate from January to February 2024 was 647100 tons, a year-on-year decrease of 28.28%. The import volume of zinc concentrate has decreased, and the supply of zinc concentrate is tight. The processing cost of zinc concentrate decreased in March, and the supply of zinc in the market was tight.

Poor macroeconomic growth

The Swiss central bank announced a 25 basis point rate cut and adjusted the benchmark interest rate from 1.75% to 1.5%. The sudden shift in monetary policy by the Swiss central bank may lead to a series of chain reactions. The US PMI data released by S&P Global and Research shows that the initial value of Markit’s manufacturing PMI in March was 52.5, and the initial value of Markit’s comprehensive PMI in March was 52.2. The US manufacturing business activity in March showed strong performance, setting the fastest growth rate in nearly two years. In the past two weeks since mid March, the US dollar index has continued to rise, with macroeconomic recovery. However, inflationary pressure still exists, and the macroeconomic weakness in the zinc market remains. The demand growth in the zinc market is not satisfactory.

Future Market Forecast

According to data analysts from Business Society, the supply of zinc concentrate is tight, and zinc prices fluctuated and rose in March. However, the macroeconomic recovery is not good, and the demand growth in the zinc market is insufficient. This week, zinc prices fluctuated and fell. In the future, both supply and demand in the zinc market have rebounded, and the support for zinc price increases is limited. It is expected that zinc prices will fluctuate and consolidate in the future.