1. Price trend

According to the data monitoring of SunSirs, zinc market rose first and then fell this week, and zinc price rose in shock. As of January 10, the spot price of zinc was 18,540.00RMB/ton, up 1.24% from 18,313.33RMB/ton at the end of last week (January 5), up 0.82% from 18,390.00RMB/ton at the beginning of the week, down 15.27% from the same period last year.

2. Market trend analysis

Domestic zinc Market

The output of refined zinc from January to December 2019 was 5.844 million tons, with a cumulative year-on-year growth rate of 9.64%. It is estimated that the refined zinc output will be 6.24 million tons in 2020, up 6.78% year on year. The main reason for the sharp increase of refined zinc output is that the domestic TC has risen to 6,500RMB/ton all the way, near the winter storage, and the processing cost has slightly dropped in some areas, but the reduction range is limited, and the output is still increased. The output of refined zinc has increased significantly, which has a great negative pressure on the future zinc price, and the zinc market is negative.

International LME Market

After the new year's day, the price of zinc in LME market rose sharply, which was good for zinc market and good for domestic zinc price. The international economic environment has recovered, and the future zinc market is good.

3. Future prospects

Analysts from the SunSirs believe as the zinc concentrate processing fee continues to rise, the domestic zinc output has increased substantially, and the production enthusiasm of zinc smelting enterprises is high, it is expected that the future zinc output will continue to rise substantially, which has a negative pressure on the zinc price; however, with the recovery of the international economic environment, the future zinc market demand is expected to rise, and the zinc price will rise strongly; the Spring Festival stock is coming, and the zinc market will rise in the near future The power is increased, and the zinc price is fully motivated. Generally speaking, the recent positive and negative of zinc market is mixed, and the overall recent positive is greater than the negative. It is expected that zinc price will rise in the future.

Related lwasted companies: Nonfemet(000060), CHIHONG Zn&Ge(600497).

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