1. Zinc price trend

According to SunSirs data monitoring, zinc prices fluctuated slightly in December, and the zinc market struggled to rise. As of December 18, the average zinc price was 22,256.67 yuan/ton, a slight increase of 2.46% compared to the 21,723.33 yuan/ton zinc price on December 1 at the beginning of the month.

2. Galvanized Sheet Market

According to statistics from SunSirs, the price of galvanized sheet rose sharply in December, and the price of galvanized sheet hit a new high in 10 years. The prices of downstream products in the industrial chain have risen, and the demand for zinc ingots has increased, and the benefits of zinc ingots have increased. The zinc market has a greater momentum for rising prices.

3. Global zinc market supply and demand data

According to a report released by the World Metal Statistics Bureau, the global zinc market has a surplus of 293,000 tons from January to October 2020, and a shortage of 76,000 tons in 2019. From January to October, global refined zinc production increased by 1.6% year-on-year, and demand fell 1.8% year-on-year. In 2020, the global zinc market will be oversupply, which will be negative for the domestic zinc market.

Data from the International Lead and Zinc Research Group show that in October 2020, the global zinc market oversupply increased from 38,900 tons in September to 52,900 tons. The global zinc supply surplus was 480,000 tons from January to October, compared with a shortage of 216,000 tons in the same period last year. In 2020, the risk of oversupply in the zinc market will gradually increase.

4. Analysis Summary

SunSirs analysts believe that the domestic zinc industry chain market has rebounded, and the price of galvanized sheet has hit a record high, which is obviously positive for the zinc market. However, in the global market, the zinc market has oversupply and the downward pressure on the zinc market has increased. The global zinc market has dragged down the domestic zinc market. Generally speaking, the domestic zinc market is generally positive in the market outlook. Zinc prices are expected to fluctuate upwards. However, dragged down by the global zinc market, the domestic zinc prices have risen slightly and slowly.

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

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