2017 Lead&Zinc Market Polling Results: Zinc Price to Move below 20,000 Yuan, and Lead Price to Trade at 15,000-17,500 Yuan

Published: May 22, 2017 17:34
SMM surveys attendees at the 12th Shanghai Lead&Zinc Summit 2017 for their opinions on the 2017 lead&zinc market.

SHANGHAI, May 22 (SMM) – Lead price in face of weak demand and supply registered sharp decline in the first half of 2017. Zinc price tended to drop due to lower-than-expected demand, despite of small increase in supply. Stricter environmental protection inspection captures market attention again in 2017. How this affects supply and demand of lead and zinc industries? Will those two shore up prices of lead and zinc in the second half of year?

Collections of Stories in Base Metal Market at SMM 2017 Lead&Zinc Summit

SMM surveys attendees at the 12th Shanghai Lead&Zinc Summit 2017 for their opinions on the 2017 lead&zinc market.

1. Zinc price has dropped from highs in the first half of 2017 and approaches to 20,000 yuan per tonne at present. Where is zinc price headed in the rest of year?

A. below 20,000 yuan per tonne (50% of attendees in the survey)

B. 20,000-22,000 yuan per tonne (38.46%)

C. above 20,000 yuan per tonne (12.24%)

2. Strict implementation of Environmental Protection Law restricts mines’ production, resulting in slow new expansions and output resumption at mines. When will zinc concentrate output rise?

A. Q1 2017 (0%)

B. Q2 2017 (8.33%)

C. Q3 2017 (27.78%)

D. Q4 2017 (18.42%)

E. 2018 (47.22% of attendees in the survey)

3. Imported zinc suffered losses for a long time in 2016, and the losses narrowed in recent months due to high premiums in China. Import window of refined zinc is likely to open. Will refined zinc import increase in the rest of year?

A. to narrow (17.86%)

B. to be flat at 2016’es level (34.48% of attendees in the survey)

C. to edge up by 1-2% (24.14%)

D. to increase more than 3% (20%)

4. Zinc used in construction demand may reduce due to real estate market regulations. What are new rising strengths for galvanizing demand in the future?

A. infrastructure construction (41.3% of attendees in the survey)

B. real estate (10.42%)

C. vehicle (25%)

D. home appliance (12.5%)

E. individual consumer goods (6.25%)

F. others (0%)

D. none (4.17%)

5. Environmental checks struck galvanizing consumption in the first half of the year. Will faltering growth of galvanizing consumption drag down global zinc demand and consumption growth in 2017?

A. to narrow (21.74%)

B. to be flat (69.57% of attendees in the survey)

C. to increase (8.7%)

6. Lead price declined in the first half of 2017 and traded price fell below 16,000 yuan per tonne at present. Where is lead price headed in the rest of year?

A. 15,000-17,500 yuan per tonne (45.83% of attendees in the survey)

B. 14,000-17,000 yuan per tonne (37.5%)

C. 15,500-18,000 yuan per tonne (16.67%)

7. Utilization proportion of secondary lead continues rising and approaches 40% at present in China. Where is it headed in the next 5 years?

A. replacement rate to rise sharply (90.48% of attendees in the survey)

B. replacement rate to be flat (9.52%)

C. replacement rate to decline (0%)

8. Lead-acid battery demand was sluggish in H1 2017. Will this reduce battery output and affect lead demand in the whole year?

A. lead demand to increase sharply (4.35%)

B. lead demand growth to slow down (65.22% of attendees in the survey)

C. lead demand to be flat (21.74%)

D. lead demand to edge down (4.35%)

E. lead demand to plunge (4.35%)

9. Li-ion battery industry develops rapidly in recent years, with rising demand in new energy vehicle and ofo bike sharing markets, striking lead-acid battery demand. How long will Li-ion battery replace lead-acid battery?

A. Li-ion battery cannot replace lead-acid battery (25%)

B. 3-5 years (25%)

C. 5-10 years (33.33% of attendees in the survey)

D. above 10 years (16.67%)

For news cooperation, please contact us by email: sallyzhang@smm.cn orservice.en@smm.cn.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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