Zinc price fluctuated and rose in February

According to the data monitoring of SunSirs, as of February 28, the zinc price was 23,074 RMB/ton, down by 5.30% compared with the price of 24,366 RMB/ton on February 1. Zinc market inventory increased, demand was less than expected, and zinc prices fell in shock in February.

Analysis review

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 the downward pressure on zinc price is great.

Domestic zinc market demand is expected to pick up

In February, the domestic trichloroethylene price as a whole stopped falling and rebounded, and the hydrofluoric acid price as a whole weakened and stabilized. In general, the upstream raw material price as a whole stopped falling and rebounded slightly, and the domestic R134a price rose slightly supported by the small recovery of cost.

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 460,000 tons, an increase of 1.3% on a year-on-year basis, an increase of 4,000 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 had been adjusted, the enthusiasm of zinc smelters remains, zinc smelters had resumed production, Henan Zinc Plant had been put into operation, the supply of zinc had increased, the social zinc inventory had accumulated, the output of domestic zinc market had increased, and the supply of zinc market is sufficient.

Market outlook

According to the data analyst of SunSirs, 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 recovery of the economy, the demand of zinc market continues to warm up, while the high price of zinc concentrate processing falls, and the supply of zinc market may grow less than expected. The supply and demand of zinc market in the future may maintain a fragile balance, and it is expected that the price of zinc will stabilize by weak shocks.

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