1. Zinc price trend

According to data monitoring by SunSirs, zinc prices fluctuated slightly in December, demand in the zinc market rebounded, and the zinc market struggled to rise. As of December 24, the average zinc price was RMB 2,1800.00/ton, a slight increase of RMB 21,723.33/ton from December 1 at the beginning of the month, an increase of 0.35%.

2. Domestic monthly zinc output

According to data from the National Bureau of Statistics of China, zinc production declined in November, and national zinc production increased slightly in 2020. The supply of zinc in the zinc market was sufficient. In November, the supply of zinc in the domestic zinc market decreased and the zinc market increased momentum.

3. Domestic automobile production data

According to data from the National Bureau of Statistics of China, automobile production in November 2020 was 2.783 million, an increase of 8.1% year-on-year; automobile production from January to November 2020 was 21.784 million, a year-on-year decrease of 2.7%. Automobile production will still decline in 2020, but monthly automobile production has increased year-on-year after April. Demand in the zinc market has rebounded and the zinc market is positive.

4. Domestic real estate construction area data

According to data from the National Bureau of Statistics of China, from January to November 2020, the construction area of ​​real estate was 90242248 million square meters, with a cumulative increase of 3.2%; from January to November, the total construction area of ​​real estate started was 201,846,700 square meters, a cumulative decrease of 2%. The area of ​​newly-started construction has declined and the real estate market has generally declined. However, with the slow increase of newly-started area, demand in the zinc market is slowly picking up, and the zinc market is positive.

5. Analysis, Summary and Outlook

SunSirs analysts believe that the domestic automobile production and real estate market are picking up, and the zinc market demand is picking up. In November, the domestic zinc production fell slightly, and the zinc market supply decreased. The overall domestic zinc market supply decreased and demand increased. The price of zinc is expected to fluctuate slightly in the future.

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

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