[SMM Analysis] the output of Guangdong Zinc Ingot increased greatly by Multi-factor Resonance

SMM4, March 20: last Friday and weekend, the export volume of zinc ingot warehouses in Guangdong was nearly 7000 tons, a high level in recent years. Against the background of the current decline in foreign demand, the output increased significantly, triggering market discussion. We believe that the sharp increase in storage output is due to the following reasons:

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1. The price difference between Shanghai and Guangdong widens, and the current price difference between Shanghai and Guangdong zinc ingots widens to about 130 yuan, covering the shipping costs of the two places, attracting the purchase of zinc ingots from Guangdong in the lower reaches of Jiangsu and Zhejiang provinces.

2, die casting alloy factory orders decline, but the terminal last month low price replenishment inventory has been more than January, the current need to enter the market to supplement a certain volume, coupled with galvanized consumption can be pointed, the overall demand is still OK.

3. The production cost of waste brass in copper plant is relatively high, and the production of copper plant using electrolytic copper and zinc ingot increases more, which boosts the demand of zinc ingot.

4. In the near future, alloy factories in Hunan and Fujian still have the purchase of zinc ingots in Guangdong market, which has led to the export of zinc ingots from Guangdong market.

To sum up, Guangdong is limited by the decline in die-casting zinc alloy consumption, the impact on market demand is difficult in the short term, but based on the current market situation, in the current situation of demand, the overall demand of Guangdong market is still supported.

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