1. Zinc price trend

According to SunSirs data monitoring, zinc prices fluctuated slightly in October and the zinc market slowly recovered. As of October 31, the average zinc price was RMB 20,120.00/ton, which was an increase of RMB 19,723.33/ton on October 1 at the beginning of the month, an increase of 2.01%.

2. China Manufacturing Purchasing Manager Index

According to data from the National Bureau of Statistics of China, in October, China’s Manufacturing Purchasing Managers’ Index (PMI) was 51.4%, a slight decrease of 0.1 percentage point from the previous month, but it has been continuously above the threshold since March, indicating that the overall manufacturing industry has continued Pick up. The PMI has been above the critical line for several months, indicating that the domestic economic environment is picking up, the domestic zinc market is favorable, and the zinc price has a greater momentum.

3. The MSCI All Country World Index has the largest weekly decline since the plunge in March

The Morgan Stanley Capital International All Countries Global Index fell 1.2% on October 30, and fell 5.3% in 5 trading days. This was the largest weekly decline since the market crash caused by the outbreak of the epidemic in March. The latest statistics show that the epidemic data of European countries have broken records. France and Germany have closed the city for the second time. Italy, Poland, the Czech Republic, Germany, Switzerland, Greece, Portugal and Russia have reached new highs in new cases and deaths. The United States has recently recorded new highs of new cases, with more than a thousand deaths in a single day, with more than 9 million confirmed cases, nearly 3% of the population, and 229,000 deaths. The epidemic has affected the recovery of the global economy, the zinc market is still in dire straits, and the domestic zinc market demand is slowly picking up.

5. Analysis Summary

SunSirs analysts believe that the domestic economic environment continues to pick up, which is positive for the zinc market and the zinc price rise is supported. The zinc price fluctuated in October. However, while the domestic zinc market is slowly rising, we should also see the deterioration of the global economic environment, the continuous sharp decline in global economic indexes, the continuous outbreak of the epidemic, which affects the global resumption of work and production, the future global economic recovery is hopeless, and the US unemployment rate remains high. The U.S. economy has recovered to some extent but has generally fallen. The U.S. election is imminent, and the future direction of the U.S. economy is difficult to determine. Market panic and market risk aversion coexist. The rise in the zinc market in the financial market supports a decline. In terms of market outlook, from the perspective of supply and demand, the domestic economy is picking up, which has provided sufficient support for the rise in zinc prices, the global economic environment has deteriorated, and the global zinc price support has fallen. It is expected that zinc prices will decline slightly in November. However, the U.S. election has increased the uncertainty in the zinc market. After the U.S. election, if favorable policies are stimulus, zinc prices may rise in the short term.

Related listed companies: Zhongjin Lingnan (000060), Chihong Zinc Germanium (600497).

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