Zinc price trend stops rising and falling

In June, the zinc market changed its 21-year upward trend, and the price of zinc fell, and the price of zinc dropped by 3.41%.

Zinc price trend in June

In June, the price of zinc fluctuated and fell. As of June 30, the price of zinc was 22,343 yuan/ton, a decrease of 3.41% from the 23,133.33 yuan of zinc on June 1. The price of zinc fluctuated and the zinc market weakened.

China Manufacturing Purchasing Managers Index

According to data released by the National Bureau of Statistics, in June, China’s Manufacturing Purchasing Managers’ Index (PMI) was 50.9%, a slight decrease of 0.1 percentage point from the previous month, and continued to be above the critical point. The manufacturing industry continued its steady expansion but its expansion slowed down. , The demand in the non-ferrous industry slowed down, and the export prosperity index fell. In general, the zinc market demand expansion slowed down in June.

The State Reserve Bureau throws out the reserve

According to the State Bureau of Grain and Material Reserves, in accordance with the deployment of the State Council's executive meeting on ensuring the supply and price stability of bulk commodities, the State Bureau of Grain and Material Reserves will release copper, aluminum, zinc and other national reserves in batches in the near future. According to the announcement of the National Bureau of Grain and Materials Reserves, the first batch of national zinc reserves totaled 30,000 tons in 2021 will be released recently; dumping of reserves has increased the supply of zinc to the zinc market, which is conducive to the stability of product prices in the zinc market, and the zinc market has been stimulated by news to stimulate prices .

Overview

In June, the zinc market's rise slowed down, the peak season of the zinc market was about to end, and the market outlook for the zinc market was expected to fall. In June, zinc concentrate processing fees rose, and Yunnan's power rationing was gradually released in June. Zinc smelting enterprises' production enthusiasm increased, and zinc smelting enterprises With the increase in output and the increase in the supply of zinc ingots, the balance of supply and demand in the zinc market has gradually changed from short supply to oversupply. With the implementation of the state dumping of reserves, the zinc market's supply surged, the imbalance between supply and demand in the zinc market was eased, the short-term excess supply, the rising momentum of the zinc market suddenly lost, the downward pressure on the zinc market increased, and the zinc price fluctuated and fell in June. In the future, the national zinc reserve officially entered the market in July, which will have an impact on the zinc market. The price of zinc is expected to fall in July. The price of zinc will rise sharply in 2020 and 2021, and the non-ferrous metals sector will also rise sharply in 21 years. Under the rising market, the risk of zinc prices falling sharply in July is relatively small. It is expected that zinc prices will fluctuate in July. Decline, the decline is expected to be within 3%.

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

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