The zinc price fluctuated this week
According to the Commodity Market Analysis System of SunSirs, as of July 16th, the zinc price was 24,202 RMB/ton, a fluctuating decrease of 0.29% compared to the zinc price of 24,272 RMB/ton on July 9th.
Macro dynamics
The International Monetary Fund (IMF) has released its latest World Economic Outlook report, maintaining its expectations for global economic growth. It is expected that the global economy will record growth rates of 3.2% and 3.3% in 2024 and 2025, respectively. The IMF has raised its forecast for China's economic growth this year to 5%, which is 0.4 percentage points higher than its April forecast. The latest forecast from the IMF is that global economic growth is expected to remain at 3.2% in 2024, while global trade volume is expected to increase by 3.1% and 3.4% in 2024 and 2025, respectively, both of which are 0.1 percentage points higher than the forecast in April. The expected growth rate of the US economy this year has been lowered by 0.1 percentage points to 2.6%, while the expected growth rate of the Eurozone economy has been raised by 0.1 percentage points to 0.9%. The IMF stated that the momentum of global de inflation is slowing down, making the normalization of monetary policy more complex.
London LME futures market zinc ingot inventory decreased by 15,750 tons compared to the beginning of the month
According to data released by the London Metal Exchange (LME), as of July 16th, the inventory level of London zinc was 246,100 tons. The LME market's zinc ingot inventory continued to decline slightly, with a decrease of 15,750 tons from the beginning of the month.
The Xinjiang Huoshaoyun Lead Zinc Mine project had completed mining of 60,000 tons
The Huoshaoyun lead-zinc mine in Xinjiang is located in the central part of the Karakoram Mountains, with characteristics such as large deposit scale, high ore grade, and simple mining and processing technology. The total investment of the Xinjiang Huoshaoyun Lead Zinc Mine project is 26.17 billion RMB, including 12.221 billion RMB for mining engineering, 5.433 billion RMB for long-distance slurry transportation pipeline engineering, and 8.516 billion RMB for smelting engineering. As of July 16th, the mine had completed a total of 600,000 cubic meters of stripping and extracted 60,000 tons of ore.
Market outlook
According to data analysts from SunSirs, with the production of domestically burned cloud mines, there may be an increase in output, but considering the limited impact of weather conditions on actual mining time. Domestic safety and environmental inspections are relatively frequent, and some enterprises have also experienced a decrease in production due to the impact of floods and water logging disasters. This week, the production of zinc plating and zinc oxide downstream had rebounded compared to last week, but the performance of die-casting was still weak, and overall orders had not improved. In the short term, it is highly likely that zinc prices will continue to fluctuate.
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