Zinc prices fluctuated and fell in March

According to data monitoring by Business Society, as of March 31, the zinc price was 22506 yuan/ton, a decrease of 3.60% compared to the zinc price of 23346 yuan/ton on March 1. The market demand rebounded less than expected, and zinc prices fluctuated and fell in March.

China Manufacturing Purchasing Managers Index

According to data released by the National Bureau of Statistics, in March, the Manufacturing Purchasing Managers’ Index (PMI) was 51.9%, a decrease of 0.7 percentage points from the previous month, above the critical point, and the manufacturing industry maintained an expansion trend. However, the PMI has decreased, the expansion trend has slowed down, and the economic recovery in March was less than expected. With the accelerated recovery of the domestic economic cycle, production and market demand have steadily rebounded, and the economy has maintained a recovery momentum. The pace of economic expansion is expected to accelerate, and the demand for zinc in the future is expected to rebound.

Zinc concentrate processing costs decreased in March

From the trend chart of zinc concentrate processing fees, it can be seen that in March, the zinc concentrate processing fees decreased, the enthusiasm of zinc smelting enterprises to start operations decreased, the expected production of zinc in the market decreased, and the expected supply of zinc in the market decreased.

According to inventory statistics in the Shanghai futures market, the zinc content in the Shanghai futures market in March. The inventory of zinc ingots has significantly decreased, the supply of zinc in the market has decreased, and the support from the rising zinc market remains.

From the statistical table of zinc ingot trading volume and transaction amount in the Shanghai futures market, it can be seen that the trading volume and transaction amount of zinc ingots in March decreased by 26.25% and 35.47% year-on-year, and increased by 23.74% and 20.39% month on month. The month on month increase indicates economic recovery, and the enthusiasm for trading in the zinc market has rebounded; The significant year-on-year decline indicates that the economic recovery is not as expected, and the demand for zinc remains weak.

>Future Market Forecast

According to data analysts from Business Society, PMI is still in the expansion range, and there is still expectation of a rebound in demand in the zinc market. In March, trading volume and transaction amount both fell sharply year-on-year, and the economic recovery was less than expected. The demand in the zinc market remains weak; The processing cost of zinc concentrate has decreased, and the supply of zinc in the market is expected to decline,. Both supply and demand are weak, with limited support for the rise of the zinc market. It is expected that zinc prices will fluctuate and consolidate in the future.