SMM Forecast For Zinc Prices This Week

Published: Jun 26, 2023 16:22

Source: SMM

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Zinc ingot prices were weak from June 19-21 as domestic stimulus policy failed to pay off as expected. There has been no significant change in overseas fundamentals. The contango structure of LME cash to the three-month contract expanded from zero to $17/mt.

In China, downstream stockpiling ahead of the Chinese Dragon Boat Festival holidays during June 22-24 drove inventories to decline slightly. But spot premiums were low. A large volume of available imported zinc ingots including SMC, YP, Peruvian and Kazakhstan zinc offset the domestic inventory declines.

Any reopening of the import window will add to supply pressure. Small and medium-sized galvanising and die-casting plants closed for up to four days for the Dragon Boat Festival holidays. The overall fundamentals were weak.

SHFE 2307 zinc contract prices are expected to move between 19,500-20,400 yuan/mt this week, and LME zinc will trade between $2,250-2,450/mt. Spot premiums in Shanghai will stand at 150-220 yuan/mt.

Market forecast

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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