SHANGHAI, Dec 23 (SMM) – SHFE and LME zinc prices once again hit new highs in two months, mainly owing to the continuously rising electricity and natural gas prices which rose by more than 20% amid intensifying energy shortages in the eurozone, according to SMM. Meanwhile, the costs of smelters also climbed due to low zinc concentrate TCs as a result of tight supply.
Specifically speaking, the Auby zinc project owned by Nyrstar is scheduled to carry out maintenance from the first week of 2022 in response to acute energy shortages in the eurozone. The decision has arose broad market concerns over the supply side, which boosted both the SHFE and LME markets.
However, the SHFE/LME zinc price ratio continued to drop due to weak demand and supply in China. On the supply side, most smelters kept normal production and were not affected by the energy issue except for those in Shaanxi and Jiangxi who cut the output due to environmental protection requirements. Meanwhile, the China demand side entered the seasonal low as the environmental protection-related disruptions restricted the operating rates of galvanising companies; and the die-casting and zinc oxide sectors were also in the off-season. Besides, most manufacturers were busy with managing their account book, and cut their output, which lowered the decline in social inventories.
价格上，在欧洲电价高企的背景下，锌价易涨难跌，仍需关注海外炼厂的进一步动态。
Looking into the future, the zinc prices are unlikely to drop amid high electricity prices in the eurozone. And the market shall keep watching the moves of overseas smelters.
![SHFE สังกะสียังคงปรับตัวขึ้น จับตาการมาถึงของแท่งสังกะสีจากนอกจีน [สรุปสัญญาฟิวเจอร์สสังกะสี SMM]](https://imgqn.smm.cn/usercenter/ipTIN20251217171755.jpg)
