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

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.

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

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Imported zinc market

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Review of Zinc City

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[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