1、 Price trend
According to the data monitoring of business agency, zinc market recovered in April, and zinc price rose in shock. As of April 30, the spot price of zinc was 16646.67 yuan / ton, up 7.24% from 15523.33 yuan / ton at the beginning of the month. In April, the number of domestic enterprises resumed construction increased, the zinc market was good, and the overall zinc market rose.
2、 Market trend analysis
LME Market
It can be seen from the LME price chart that in April, the price of zinc ingot in LME market rose in shock, the supply and demand in the international market both fell, and the overall international zinc market rose in shock, which is good for the domestic zinc market.
Zinc stock in Shanghai market
Time: this week’s inventory increase / decrease available inventory capacity
Subtotal futures subtotal futures increase / decrease of last week and this week
4.27-4.30 120881 56305 -12468 -7251 446444 453695 7251
4.20-4.24 133349 63556 -13617 -16112 430332 446444 16112
4.13-4.17 146966 79668 -6352 -4315 426017 430332 4315
4.6-4.10 153318 83983 -4821 -2680 423337 426017 2680
3.30-4.3 158139 86663 -1867 -2339 420998 423337 2339
3.23-3.27 160006 89002 -8319 -5008 415990 420998 5008
3.16-3.20 168325 94010 -1586 7125 423115 415990 -7125
3.9-3.13 169911 86885 7509 -1202 421913 423115 1202
3.2-3.6 162402 88087 2391 1999 423912 421913 -1999
It can be seen from the table that last week, the stock of zinc ingot in Shanghai futures market fell sharply in April, the stock of futures fell sharply, the supply of domestic zinc market fell sharply, and the demand continued to pick up. Generally, the domestic zinc market is more favorable, and the zinc market is gradually picking up.
Domestic zinc production
Date: monthly output (10000 tons) cumulative output (10000 tons) year on year growth (%) cumulative growth (%)
March 2020 48.9 149.5 4.7 11
February 2020 — 104 — 12.9
December 2019 60.7 623.6 19.5 9.2
November 2019 59.4 569.2 13.1 9
October 2019 54.8 512.3 8.3 9.4
September 2019 54.8 458.3 18.9 9.5
August 2019 52.8 403.4 18.9 8.2
July 2019 51.2 343.8 17.4 6.1
June 2019 51.3 281.5 10.3 2.3
May 2019 48 226.9 7.4 – 0.6
April 2019 46.5 176.5-0.4-4.4
March 2019 45.3 130.6 0.4 – 5.1
February 2019 – 85.1 – 8.2
It can be seen from the table that in the first quarter, the domestic zinc ingot production maintained a substantial growth, and the epidemic had little impact on the production of zinc ingots. The domestic zinc concentrate processing fee is still at a high level, the production enthusiasm of zinc smelting enterprises is still on the rise, the output of zinc ingots continues to increase, the zinc market is still in oversupply, and the downward pressure of zinc market is still on.
China Manufacturing Purchasing Manager Index
China’s Manufacturing Purchasing Managers Index (PMI) was 50.8% in April, down 1.2 percentage points from last month, according to the National Bureau of statistics. In April, the production and operation of the manufacturing industry continued to improve compared with last month, but the expansion strength was weakened. In April, the resumption of work and production of enterprises continued to advance, and large, medium and small enterprises maintained a recovery trend, but the overall demand recovery was weaker than that of production, and affected by the sharp contraction of global economic activities, the uncertainty of import and export market increased. The overall domestic economic recovery is good for the zinc market; the risk of the international market is large, and the space for the zinc market to rise is limited.
3、 Future prospects
Bai Jiaxin, an analyst of business club, thinks that: in April, the domestic zinc market was generally good, the domestic economic production continued to improve in April, the zinc market slowly recovered, the domestic zinc ingot output grew steadily, the supply and demand of the zinc market were still serious, and the domestic zinc Market was lack of momentum. In terms of international zinc market, the international zinc market is fluctuating and contracting, the rising power of the international zinc market is insufficient and the falling pressure is large. Affected by the epidemic situation, the production of zinc ore is cut down a lot, and the downstream automobile industry is basically stagnant. The overall international zinc Market is in double decline of supply and demand, and the global transportation is limited at this stage, the import and export of international zinc ingots is blocked greatly, and the impact of international zinc price on domestic zinc price is weakened. Generally speaking, with the resumption of production of domestic enterprises, the demand of domestic zinc market is gradually increasing, and the zinc market has a certain momentum of growth. It is expected that the price of zinc will rise slowly in the future. However, due to the serious oversupply of zinc market, there is no room for a large increase in zinc market, and it is expected that the price of zinc will rise slightly in the future.