1. Zinc price trend

According to SunSirs data monitoring, zinc prices fluctuated and rose in November, and the zinc market rose. As of November 16, the average zinc price was RMB 20,650.00/ton, which was an increase of RMB 20,120.00/ton from November 1 at the beginning of the month, an increase of 2.63%.

2. Home appliance export data

According to statistics from the General Administration of Customs of China, the export volume of household appliances in September was 342.455 million units, and the cumulative export volume from January to September was 231.9994 million units, a cumulative year-on-year increase of 8.2%, and the export volume and value increased significantly year-on-year. The demand for zinc ingots in the home appliance industry is rising, and the zinc market is positive.

3. Automobile production data

According to statistics from the China Commercial Industry Research Institute, in October 2020, the production and sales of automobiles were 2.552 million and 2.573 million respectively, an increase of 0.9% and 0.1% from the previous month, and an increase of 11.0% and 12.5% ​​from the same period last year. In 2020, domestic auto production has steadily increased since the second quarter. The domestic auto industry market has recovered, and the auto industry's demand for zinc ingots has increased, which is positive for the zinc market.

4. Analysis Summary

SunSirs analysts believe that in terms of demand, zinc ingots are widely used and can be summarized into several categories: infrastructure, home appliances, and automobiles. It can be seen from the export data of home appliances that the domestic home appliance market is very positive, the demand for zinc market is rising, and the auto industry market is gradually picking up, which is further beneficial to the zinc market. Although infrastructure has declined due to the impact of the epidemic, as the domestic economy recovers, Infrastructure has gradually recovered, and the negative demand for the zinc market has weakened. In general, the rebound in the export of home appliances and the automotive industry stimulated demand in the zinc market, and the zinc market has increased momentum. The price of zinc is expected to fluctuate widely in the future.

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

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