47% of Chinese Zinc Smelters Pessimistic About Zinc Prices, SMM Survey Shows

Jul 8, 2014 10:17

Source:SMM

47% of major Chinese zinc smelters holds a bearish outlook for zinc prices this week, Shanghai Metals Market survey shows.

SHANGHAI, Jul. 8 (SMM) – 47% of major Chinese zinc smelters holds a bearish outlook for zinc prices this week, Shanghai Metals Market survey shows.

In June, LME zinc prices soared by nearly 8%, and the average price of SMM #0 zinc rose to 15,407.5 yuan ($2,493.34) per tonne, up 229 yuan per tonne, hitting a 16-month high. The latest SMM survey, however, shows that major surveyed domestic zinc smelters are cautiously pessimistic toward zinc prices.

The pessimists understand that LME zinc prices will come under downward pressures after rising by nearly 7% over the past three weeks, according to latest SMM survey of 41 major domestic zinc smelters, with capacity totaling 5.69 million tonnes. The cash-to-three-month contango and a low-demand season in China also weigh down market sentiment, and the gains without demand support will be short-lived, they told SMM.

SMM survey also finds 33% of participants are bullish, thinking LME zinc prices will rise further for the foreseeable future. Negative impact from China’s probe into financing fraud at the Port of Qingdao has wound down, and upbeat results from China and US, and positive comments by Chinese leader also boost their confidence.

The rest 20% take a neutral attitude towards zinc price. Inventories in Shanghai, Guangdong and Tianjin continued to fall slightly, but it is now a off-season for zinc, and they expect zinc prices to hover at highs in the short term, according to SMM survey.

China zinc price forecast

zinc price outlook

SMM survey

For queries, please contact Michael Jiang at michaeljiang@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Notice: By accessing this site you agree that you will not copy or reproduce any part of its contents (including, but not limited to, single prices, graphs or news content) in any form or for any purpose whatsoever without the prior written consent of the publisher.

47% of Chinese Zinc Smelters Pessimistic About Zinc Prices, SMM Survey Shows

SMM Events & Webinars

NET ZERO EUROPE - Solar & Energy Storage Summit

2nd Li-ion Battery Europe 2024

2024 Global Renewable Metal Industry Chain Summit