Zinc prices stopped falling and continued to rise this week

According to the Commodity Market Analysis System of SunSirs, as of June 8th, the zinc price was 20,026 RMB/ton, an increase of 2.80% compared to the zinc price of 19,480 RMB/ton on June 1st at the beginning of the month; The zinc price increased by 3.08% compared to 19,428 RMB/ton on June 5th. The supply and demand in the zinc market were still weak, but macroeconomic data was expected to rebound, and zinc prices fluctuated and rose.

LME zinc price trend

From the LME zinc price trend chart, it can be seen that in June, the zinc price in the LME futures market stopped falling and rose, and this week, the zinc price had risen three times in a row. LME zinc prices had risen, domestic zinc market was positive, and domestic zinc prices fluctuated and rose.

The inventory of zinc ingots in the Shanghai futures market was low

According to the trend chart of zinc ingot inventory in the Shanghai futures market, the inventory of zinc ingots in the Shanghai futures market continued to decline, with zinc ingot inventory falling below 3,000 tons in June. The inventory of zinc ingots was low and supply in the zinc market was insufficient.

Macroeconomic weakness Alleviated

Recently, multiple economic data from the United States showed that the US economy was more resilient than Europe. The possibility of the Federal Reserve suspending interest rate hikes in June had increased, and macroeconomic sentiment had rebounded, driving up US stocks and stimulating a rise in zinc prices in London; China increased its support for real estate, improved infrastructure investment, stimulated market sentiment, and trading enthusiasm among zinc traders increased.

Market outlook

SunSirs’ data analysts believe that the supply and demand in the zinc market were still weak, and macroeconomic news stimulus was the main factor affecting the trend of zinc prices. The supply and demand balance in the zinc market still existed, and although the macroeconomic situation had not improved significantly, there were still multiple positive macroeconomic news that stimulated the zinc market, causing zinc prices to fluctuate and rise. However, in the long run, there was no significant improvement in the macroeconomic situation, and there is insufficient support for the future rise in zinc prices. It is expected that zinc prices will fluctuate and consolidate in the future.

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