Zinc's current fundamentals are still optimistic. We need to be on guard against macro risks next week. [selected SMM Zinc Weekly]

Published: Feb 12, 2022 08:45

Source: SMM

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[SMM Zinc Weekly selected: zinc current fundamentals are still optimistic need to guard against macro risks next week] fundamentals, whether it is the natural gas contract signed by China and Russia, Europe has not yet found enough natural gas suppliers, or the possibility that Beixi No.2 has not been passed temporarily, has led to a result of high electricity prices caused by natural gas shortage, and the recovery of European refinery production is still not expected. The resilience of consumption is also supporting the destocking of lme inventories, pushing European spot stocks up to $450,500 / tonne. On the whole, we need to pay attention to the macro risk, we can consider callback to do long or wait for the long zinc price after the profit is out.

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

In terms of zinc, the higher-than-expected inflation rate in the United States rose to 7.5% in January, while the Federal Reserve Board will review and decide on the lending ratio and discount rate next Tuesday, both pointing to a result: the Fed may speed up and intensify its action to raise interest rates and reduce debt, which will also be the biggest macro risk from February to March. Going back to the fundamentals, whether it is the natural gas contract signed by China and Russia, Europe has not yet found enough natural gas suppliers, or the possibility that Beixi No. 2 has not been passed for the time being has led to a high electricity price caused by natural gas shortage. the recovery of European refinery production is still not expected. The resilience of consumption is also supporting the destocking of lme inventories, pushing European spot stocks up to $450,500 / tonne. Overall, the need to pay attention to the macro risk, you can consider a callback to do long or wait for the long zinc price, which is expected to run at 3600-3750 US dollars / ton.

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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: January 2022 SMM China refined zinc production is expected to be 517600 tons, an increase of 4300 tons month-on-month or a decrease of 4.56% compared with the same period last year

Zinc concentrate market: the trend of domestic and foreign ore processing fees split the overall domestic ore supply is still tight

Refinery dynamics

Imported zinc market

Zinc market forecasts next week: fundamentals are still optimistic and alert to macro risks

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

Weekly report zinc price price forecast output inventory

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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