Zinc fundamentals can still support zinc prices need not be overly pessimistic [selected from SMM Zinc Weekly]

Published: Nov 06, 2021 08:56 (GMT+8)
Source: SMM
[SMM Zinc Weekly report selected: zinc fundamentals can still support zinc prices need not be overly pessimistic] SMM expects to produce about 520000 tons in November. At the same time, we are optimistic about the resilience of consumption. on this basis, with the gradual recovery of consumption, the domestic social treasury will continue to go to the treasury. On the whole, fundamentals can still provide support, the current zinc price need not be pessimistic, it is expected that Shanghai zinc will run at 22500-24000 yuan / ton, and the domestic spot price of Shanghai zinc will rise about 300.60 yuan / ton in December.

The following is an excerpt from the weekly report of the zinc industry chain:

In terms of zinc in Shanghai, we do not think it is necessary to be overly pessimistic about zinc. First of all, at the mine end, the current problem of power restriction in Inner Mongolia has led to the aggravation of the shortage of local zinc mine supply, while the current epidemic situation and poor transportation have greatly increased the cost of capital and time for inter-provincial transportation of zinc mines. the result is a further reduction in processing fees. Under such circumstances, it is expected that it will be difficult for the smelter to return to its peak output, mainly due to the following reasons: 1. After the recent rise in industrial electricity prices in various places, the production cost of smelters has moved up greatly, and some refineries have been operating under production control. two。 Power cuts in Gansu and parts of Inner Mongolia are expected to continue until the end of the year, reducing the production of local refineries. We expect to produce about 520000 tons in November. At the same time, we are optimistic about the resilience of consumption. on this basis, with the gradual recovery of consumption, the domestic social treasury will continue to go to the treasury. On the whole, fundamentals can still provide support, the current zinc price need not be pessimistic, it is expected that Shanghai zinc will run at 22500-24000 yuan / ton, and the domestic spot price of Shanghai zinc will rise about 300.60 yuan / ton in December.

 

"View SMM Metal spot Historical Price

"apply for free access to the SMM metal industry chain database

Catalogue of "SMM Zinc Industry chain Weekly report" in this issue

Main points of this weekly report: processing fees, import profit and loss inventory

Zinc industry hot spot: Tianjin zinc inventory continues to low spot water pull up space?

Zinc concentrate market: the processing fee of zinc ore in Gansu area is reduced by 50 yuan / metal ton.

Refinery dynamics

Imported zinc market

Zinc market predicts next week: zinc fundamentals should be expected and zinc prices should not be overly pessimistic.

Review of Zinc City

Zinc plating

Die casting zinc alloy

Zinc oxide

[China Zinc Industry chain High-end report] SMM exclusive monthly survey of zinc industry chain report, covering from zinc concentrate to zinc primary consumer operating rate and supply and demand profile. And announce the exclusive monthly zinc concentrate, refined zinc balance, continue to track the industry entity enterprises, update data. And through the supply and demand situation and data model to make a simple prediction of the future trend of zinc. "View details

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.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
Tianjin Zinc: Futures Decline, Downstream Price Fixing Increases [SMM Midday Review]
1 hour ago
Tianjin Zinc: Futures Decline, Downstream Price Fixing Increases [SMM Midday Review]
Read More
Tianjin Zinc: Futures Decline, Downstream Price Fixing Increases [SMM Midday Review]
Tianjin Zinc: Futures Decline, Downstream Price Fixing Increases [SMM Midday Review]
[Tianjin Zinc: Futures Decline, Downstream Price Fixing Increases] In the Tianjin market, mainstream transactions for #0 zinc ingot were at 25,650-26,060 yuan/mt, Zijin transactions were at 25,830-26,170 yuan/mt, and #1 zinc ingot transactions were around 26,020-26,340 yuan/mt. Zijin was quoted at a premium of 130-150 yuan/mt against the 2611 contract, while Huxin was quoted at 27,430 yuan/mt. #0 zinc ingot was quoted at a premium of 70 yuan/mt to a discount of 30 yuan/mt against the 2611 contract. The Tianjin market was quoted at a discount of 20 yuan/mt against the Shanghai market.
1 hour ago
First Majestic Reports Q3 Production Decline at Los Gatos Mine, Plans Expansion for 2026 Growth
1 hour ago
First Majestic Reports Q3 Production Decline at Los Gatos Mine, Plans Expansion for 2026 Growth
Read More
First Majestic Reports Q3 Production Decline at Los Gatos Mine, Plans Expansion for 2026 Growth
First Majestic Reports Q3 Production Decline at Los Gatos Mine, Plans Expansion for 2026 Growth
Canada's First Majestic Silver released its third-quarter production report on October 8. Its Los Gatos silver-lead-zinc mine in Mexico produced 13,277,264 pounds (approximately 6,022 tonnes) of zinc during the quarter — down 4% year-on-year and 19% quarter-on-quarter — and 7,839,182 pounds (approximately 3,556 tonnes) of lead, up 2% year-on-year but down 13% quarter-on-quarter. Dragged down by a slight decline in zinc and lead recovery rates, output of both metals fell versus the prior quarter. The company is advancing expansions at the Los Gatos and Santa Elena processing plants, aiming to achieve sustained throughput growth to 4,000 t/d in the second half of 2026.
1 hour ago
Guangdong Zinc: Futures Center Pulls Back, Guangdong Premiums Rise [SMM Midday Review]
1 hour ago
Guangdong Zinc: Futures Center Pulls Back, Guangdong Premiums Rise [SMM Midday Review]
Read More
Guangdong Zinc: Futures Center Pulls Back, Guangdong Premiums Rise [SMM Midday Review]
Guangdong Zinc: Futures Center Pulls Back, Guangdong Premiums Rise [SMM Midday Review]
[Guangdong: Futures Center Pulls Back, Guangdong Premiums Rise] Guangdong 0# zinc was mainly traded at 25,695-25,970 yuan/mt, with mainstream brands quoted at a discount of 20 yuan/mt to a premium of 10 yuan/mt against the 2611 contract, a discount of 20 yuan/mt against Shanghai spot cargo, and the Shanghai-Guangdong price spread widened...
1 hour ago