Zinc prices surged in April, reaching a new high for the year

According to the Commodity Market Analysis System of Shengyishe, as of April 30th, the zinc price was 23378 yuan/ton, a significant increase of 12.22% compared to the zinc price of 20832 yuan/ton on April 1st. Zinc prices surged in April, reaching a new high for the year. On April 29th, the zinc commodity index was 129.93, an increase of 6.42% from the lowest point of 122.09 points in the year. The average zinc commodity index for the year was 120.31, and the overall zinc price in April was in a super high state within a year.

In March, zinc prices slightly increased, while in April, zinc prices continued to rise, with a significant increase reaching the largest monthly increase of the year. Macro positive, zinc prices surged in April, reaching a new high for the year.

On April 30th, zinc prices surged year-on-year, reaching a new high for the year

According to the commodity market analysis system of Shengyishe, zinc prices fluctuated and fell in 2023, and fluctuated and fell in January and February 2024. Starting from March, they fluctuated and rose, and continued to rise significantly in April. Since April 11, 2024, zinc prices have increased year-on-year compared to April 11, 2023. The average zinc price in April was at a high level for the year, and on April 30, the annual zinc price increased significantly by 9.38% year-on-year.

China Manufacturing Purchasing Managers Index

In April, the Purchasing Managers Index (PMI), Non Manufacturing Business Activity Index, and Comprehensive PMI Output Index were 50.4%, 51.2%, and 51.7%, respectively. The three major indices continued to remain in the expansion range, and the manufacturing PMI remained in the expansion range for two consecutive months. The manufacturing industry continued to recover and develop, and the overall level of China’s economic prosperity continued to expand. This is the first time in a year that PMI has expanded its range for two consecutive months. Enterprise production continues to accelerate, market demand continues to expand, market expectations remain generally stable, macroeconomic conditions are favorable, and overall zinc market demand is strongly supported.

The expectation of the Federal Reserve lowering interest rates has decreased

The month on month growth in retail sales in the United States in March was stronger than expected, weakening investor expectations for the Federal Reserve’s interest rate cut. US bond yields quickly broke through high levels, and the US dollar index jumped to a five month high. The US dollar index has been consolidating at high levels in April. Federal Reserve officials are hawkish in their statements, and expectations of interest rate cuts have fallen to freezing point.

Future Market Forecast

According to data analysts from Business Society, in the domestic market, the acceleration of economic recovery, macroeconomic benefits, and increased support for the rise in zinc prices. In the international market, the performance of economic data in Europe and America is average, with financial sentiment supporting the non-ferrous sector. The three major US stock indexes rebounded together, providing impetus for the metal market. In terms of supply: The international market has a tight supply of zinc ore, and domestic zinc mining enterprises have started resuming work and production in late April. However, the progress has not been as expected, making it difficult to alleviate the expectation of tight zinc ore supply. In the future, the supply of zinc in the market is tightening, demand is rebounding, and it is expected that zinc prices will fluctuate and rise in the future.