Zinc prices fluctuated and fell in April

According to the Commodity Market Analysis System of SunSirs, as of April 30th, the zinc price was 21,374 RMB/ton, a decrease of 6.18% compared to the zinc price of 22,782 RMB/ton on April 1st. Demand was weak, supply was increasing, and zinc prices fluctuated and fell in April.

PMI

According to data released by the National Bureau of Statistics, in April, the Purchasing Managers' Index (PMI) of the manufacturing industry was 49.2%, a decrease of 2.7 percentage points from the previous month, below the critical point, leading to a decline in the level of manufacturing prosperity In April, due to factors such as insufficient market demand and the rapid recovery of the manufacturing industry in the first quarter, which formed a high base, the PMI of the manufacturing industry fell below the critical point, and the economic level fell month on month. The production index and equipment manufacturing industry index were still in the expansion range, and it is expected that production and market demand will steadily rebound in the future. The economy will still maintain a recovery momentum, but the overall growth rate may be lower than market expectations, and the support for the future zinc market's rise will weaken.

Zinc concentrate processing costs decreased in April

From the trend chart of zinc concentrate processing fees, it can be seen that in April, the zinc concentrate processing fees decreased, but the pace of decline slowed down. The enthusiasm of zinc smelting enterprises to start operations stabilized, the expected output of zinc in the market decreased, and there was still support for the rise of the zinc market.

Zinc prices fluctuated and fell in London LME market

From the trend chart of zinc ingot prices in the London LME market, it can be seen that zinc prices in London experienced a significant fluctuation and decline in April. The supply of zinc ingots in the international market increased, and London's zinc ingot inventory greatly increased. The demand in the international market remained weak, and the international zinc price had significantly fluctuated and fallen.

Market outlook

Data analysts from SunSirs believe that the economy was still weak, with zinc prices experiencing a significant fluctuation and decline in April. The processing cost of zinc concentrate decreased, the enthusiasm of domestic zinc smelting enterprises to start construction declined, and the supply of domestic zinc market decreased. However, in the international market, the energy crisis in Europe had eased, European zinc smelting enterprises started to increase, and the supply of zinc increased. In general, the supply of zinc was sufficient, but the economy was weak and the demand was insufficient. In the future, there is sufficient supply of zinc in the market, and the recovery on the demand side is limited. It is expected that zinc prices will fluctuate and fall in the future.

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