The price of zinc fluctuated and fell last week

Last week, the price of zinc fluctuated and fell, and the zinc market went down with enthusiasm. As of October 30, the price of zinc was RMB 2,3646.00/ton, down from RMB 24,894/ton last weekend (October 22), a decrease of 5.01%; after the surge in the zinc market, the price of zinc ushered in a continuous decline last week. The enthusiasm of the zinc market has faded and the balance of supply and demand has returned.

The price of zinc in the futures market has fallen continuously

The continuous decline in zinc prices in the last cycle dragged down the price of zinc in the spot market. According to the data of the business agency, the non-ferrous index was 1364 points on October 30, which was 11.31% lower than the highest point in the cycle of 1538 points (2021-10-18). In the market, the price of zinc in the futures market dropped continuously last week.

Market overview and outlook

The price of zinc fluctuated and fell last week due to the sharp drop in the non-ferrous metal sector. With the intervention of the state's macro-control, the surge of non-ferrous metals in the early stage has slowed down, and as coal prices have continued to plummet, downstream supply and smelting expectations have increased, alleviating market supply pressure, and zinc prices have fallen accordingly. In the long run, the supply and demand in the domestic zinc market are relatively balanced. However, in the global market, the production and production cuts in Europe will seriously affect the supply of zinc in the zinc market. The decline in zinc prices will inevitably further erode the profit margins of zinc smelters in Europe and intensify the pressure on the European market to stop and reduce production. Decrease, rising international zinc prices may become inevitable. In the future, the decline in zinc prices is conducive to the return of the market to rationality, but the decline in zinc prices intensifies the supply shortage in the zinc market. There is limited room for zinc prices to fall in the future. It is expected that zinc prices will fluctuate slightly in the future.

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

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