"the heads of state of China and the United States have reached a consensus to stop imposing new tariffs on the metal market.
As far as zinc is concerned, collating customs data in recent years, China's imports of zinc ore and its concentrate from the United States account for 0.4% to 0.5% of the total, and unforged unalloyed zinc with a zinc content of 99.995% or more from the United States accounts for 0.1% to 0.3%. The proportion of unforged zinc with zinc content less than 99.99% is 2% and 5%. Downstream of zinc, there are many products, each import quantity is small and the amount of zinc used is not fixed, the influence is also limited. The suspension of new tariffs this time does not have a great impact on the direct import of the zinc market, but the overall market sentiment is good for the trend of basic metals, and there is still a certain positive effect on the export of subsequent parts of zinc downstream, such as galvanizing and die-casting. The overall supply and demand of the zinc market is positive to a certain extent, short-term or stimulate the trend of zinc prices, but need to be alert to whether there are variables in the follow-up negotiations.
As far as lead is concerned, according to customs data in recent years, China's imports of lead ore and its concentrate from the United States account for about 16% to 18% of the total import, which has a greater impact on the import of lead concentrate, and if new tariffs are stopped in the future, In the future, it may increase the inflow of some imported lead ores and alleviate the shortage of supply of some lead concentrate. In the lower reaches of lead, the main concern is the import and export of lead-acid batteries. According to customs data in recent years, the proportion of lead-acid batteries exported by China to the United States for starting piston engines accounts for about 5% to 7% of the total exports. The export volume of other lead-acid batteries accounts for about 13% to 15% of the total export volume. The export of lead-acid battery parts accounts for 0.5% of the total export. On the other hand, the export of lead-acid batteries at the beginning of the year is included in the list of 10 per cent tariffs imposed by the United States on $200 billion of Chinese goods. If the subsequent increase is stopped to 25 per cent, the domestic production of lead-acid batteries will be further reduced, which is conducive to overall lead consumption. On the whole, it is good for the supply and demand of the lead market.
In the short term, as China and the United States stop imposing new tariffs on each other, market sentiment is improving, or stimulating lead, zinc and multi-commodity prices to strengthen, but the market needs to pay attention to the further development of follow-up negotiations and continue to pay attention to the negotiation process.
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