Zinc prices fluctuated around 20,500 yuan/mt, and there will be still room for price gains

Published: Mar 04, 2024 13:27 (GMT+8)

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Zinc prices fluctuated around 20,500 yuan/mt, and there will be still room for price gains.

Zinc prices fluctuated around 20,500 yuan/mt, and there will be still room for price gains. The current main logic of trading in the market includes: 1. The supply of domestic zinc concentrate continues to be tight, and domestic and imported zinc concentrate TCs continue to decrease. This translated into losses at smelters. 2. At present, Huludao, Zhuzhou Smelter, Sihuan Zinc and Germanium, Shangluo Zinc Factory of Shaanxi Zinc Industry, Hongda Zinc and other smelters have maintenance plans in March. The supply recovery in March may be slow, tightening the domestic supply; 3. Social inventories accumulated during the Chinese New Year holidays, an increase of 100,000 mt, and a decrease from year-ago level; 4. Consumption has gradually recovered after the holiday. At the same time, there are expectations over "two political sessions" and peak season. Overall, zinc prices are still expected to rise.

The SHFE 2404 zinc contract prices are expected to move between 20,300-21,300 yuan/mt this week.

LME zinc is expected to trade between $2,370-2,530/mt.

Spot discounts are expected to stand at 60-0 yuan/mt.

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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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