SHANGHAI, Nov 17 (SMM) – SMM Zinc Processing Needs Surprise Index is 37 in September, -24 in October and expected to reach 4 in November. It shows the weak trend of zinc price in this month.
According to SMM’s research, the operation rate of mining companies in November is 1% down than October, whereas a 0.17% increase MoM is expected on smelters’ operation rate. Zinc ingot supply is at a steady increase. Zinc consumption in November has an increase around 3% MoM, mainly because the overall output was restricted, and galvanizing enterprises was affected by the restrictions for environment protection. Although it was no longer restricted since mid-November, the limited increase of zinc consumption from downstream in November may suppress the rise of zinc price. According to SMM’s monthly statement, the gap between supply and demand will be filled a little, which is not a sign for the rise of zinc price. SMM estimates that the zinc price will mainly fluctuate at a low level in November.
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