According to the monitoring of the Commodity Market Analysis System of Shengyi Society, as of January 24th, the price of 0 # zinc was 23730 yuan/ton, a slight decrease of 2.31% from the zinc price of 24290 yuan/ton on January 20th.

This week’s market analysis

This week, zinc prices have significantly fallen. Recently, due to the frequent specific comments on Trump’s tariff policies, the US dollar index has been hovering at a high level before finally closing higher, causing widespread pressure on the non-ferrous metal market.

Supply side

According to customs data, the import volume of domestic zinc concentrate increased slightly in December. At the same time, a large mine in Hebei has resumed production, further easing the situation of domestic raw material shortage. At present, smelters generally provide feedback that their inventory is relatively sufficient, and the processing fee for zinc concentrate may maintain a slight upward trend in the short term. However, with the depletion of inventory in smelters, it is still necessary to closely monitor the arrival of imported minerals at ports to assess their impact on raw material supply.

Demand side

As the Spring Festival holiday approaches, downstream enterprises are gradually entering the holiday stage, and the weakening of consumer demand in the zinc market has become inevitable. This trend will exert some downward pressure on zinc prices.

Despite the weakening of demand, domestic social inventory remains low in the short term. In addition, with the anticipation of the upcoming two sessions and the expectation of improved domestic demand, there is still some support for zinc prices. However, it is necessary to pay attention to the post holiday accumulation range to evaluate its impact on the trend of zinc prices. According to statistics, as of this week, the domestic social inventory has reached the lowest historical level of accumulated inventory before the Spring Festival.

comprehensive analysis

The effect bias caused by the uncertainty disturbance of macro factors, while the fundamentals of the zinc market are in the process of easing supply contradictions and weakening support. Therefore, it is expected that the zinc price will show a fluctuating and weak trend in the near future.