Zinc price fell in shock this week

According to the data monitoring of the business community, the zinc price was 24276 yuan/ton as of December 19, down 3.56% from 25172 yuan/ton on December 11. The risk of economic recession has intensified, and the demand for increased inventories in the zinc market has not recovered as expected. This week, the zinc price fell in shock.

Low level rise of zinc ingot inventory

It can be seen from the trend chart of zinc ingot inventory in Shanghai futures market that the zinc ingot inventory in Shanghai futures market increased slightly this week, but the overall low level of inventory was adjusted, the supply of zinc ingot increased, and the upward momentum of zinc ingot weakened.

Increased risk of economic recession

In the international market, the Federal Reserve released a hawkish signal while reducing the rate increase. The Federal Reserve decided to continue to raise interest rates, raising the target range of the federal funds rate by 50 basis points to between 4.25% and 4.50%. The optimistic expectation of the market was frustrated, and the pessimism of economic recession spread.

In the domestic market, in November, the purchasing manager index (PMI) of the manufacturing industry was 48.0%, 1.2 percentage points lower than that of the previous month, lower than the critical point. In November, the domestic economy lost more momentum, factory output slowed down, retail sales continued to decline, all of which failed to meet expectations. The impact of the change in prevention and control measures on the economic recovery was less than expected, the industrial side maintained the supply increase and demand decrease, and the downward pressure on the zinc market increased.

Future market forecast

According to the data analysts of the business community; The Federal Reserve reduced the rate increase, but the rate increase remained unchanged. The pessimism of economic recession spread in the international market, and domestic prevention and control measures changed, but the macroeconomic recovery was less than expected. To sum up, the supply increase and demand recovery in the zinc market are not as good as expected, and the zinc price is expected to fall in shock.