Zinc prices fluctuated and fell in April

According to the Commodity Market Analysis System of the Business Society, as of April 30th, the zinc price was 21374 yuan/ton, a decrease of 6.18% compared to the zinc price of 22782 yuan/ton on April 1st. Weak demand and increased supply led to a volatile decline in zinc prices in April.

China Manufacturing Purchasing Managers Index

According to data released by the National Bureau of Statistics, in April, the Purchasing Managers’ Index (PMI) of the manufacturing industry was 49.2%, a decrease of 2.7 percentage points from the previous month, below the critical point, leading to a decline in the level of manufacturing prosperity. In April, due to factors such as insufficient market demand and the rapid recovery of the manufacturing industry in the first quarter, which formed a high base, the PMI of the manufacturing industry fell below the critical point, and the economic level fell month on month. The production index and equipment manufacturing industry index are still in the expansion range, and it is expected that production and market demand will steadily rebound in the future. The economy will still maintain a recovery momentum, but the overall growth rate may be lower than market expectations, and the support for the future zinc market’s rise will weaken.

Zinc concentrate processing costs decreased in April

From the trend chart of zinc concentrate processing fees, it can be seen that in April, the zinc concentrate processing fees decreased, but the pace of decline slowed down. The enthusiasm of zinc smelting enterprises to start operations stabilized, and the expected decrease in zinc market production was still supported by the rise of the zinc market.

Zinc prices fluctuate and fall in London LME market

From the trend chart of zinc ingot prices in the London LME market, it can be seen that zinc prices in London experienced a significant fluctuation and decline in April. The supply of zinc ingots in the international market has increased, and London’s zinc ingot inventory has greatly increased. The demand in the international market remains weak, and the international zinc price has significantly fluctuated and fallen.

Future Market Forecast

Data analysts from Business Society believe that the economy is still weak, with zinc prices experiencing a significant fluctuation and decline in April. The processing cost of zinc concentrate has decreased, the enthusiasm of domestic zinc smelting enterprises to start construction has declined, and the supply of domestic zinc market has decreased. However, in the international market, the energy crisis in Europe has eased, and the starting of European zinc smelting enterprises has increased, and the supply of zinc market has increased. In general, the supply of zinc market is sufficient, but the economic weakness is insufficient. In the future, there is sufficient supply of zinc in the market, and the recovery on the demand side is limited. It is expected that zinc prices will fluctuate and fall in the future.