[Zn Price] Will Recent Zinc Price Rallies Continue into July?

SHANGHAI, Jul. 2 (SMM) – Zinc market staged a slight gain from lows in recent days? Will the rally continue into July? 

“Weakening demand in major zinc consumer sector bodes ill for zinc outlook in July,” SMM says. 

A recent SMM survey of galvanizing sector, the largest zinc consumer and also the best performer among major zinc consumers, paints a gloomy picture.

Utilization rate at domestic galvanized manufacturers is not expected to improve in July, so zinc demand from the sector will not lend a support to zinc price, SMM foresees. 

The price of 1mm hot-galvanized plate/coil in the Shanghai market hit a record low of 3,270 yuan per tonne on Jul. 2, a reflection of poor end-user demand. July is a traditionally low demand season for automobile and real estate markets. In some regions, some SME galvanizers collapsed or sought production shift, SMM learns.  

Moreover, galvanized structural parts plants suffer stringent environment protection pressures. Plants in Tianjin, one of three major galvanized structural parts producing regions, have been required to shut down for inspections several times so far this year, SMM survey finds. A possibility of new inspection actions in the region should be not excluded in July.   

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