Zinc price fell in May

According to the data monitoring of the business agency, the zinc price fell violently in May, and the zinc market recovered after falling. As of May 31, the zinc price was 26174 yuan / ton, down 5.65% from 27742 yuan / ton on May 1 at the beginning of the month. In May, the supply and demand of zinc market slowly recovered, and the zinc price stopped falling and recovered. Since late April, the price of zinc has fallen sharply. With the gradual progress of resumption of work and production, the price of zinc has slowly recovered since mid May.

China Manufacturing Purchasing Manager Index

According to the data released by the National Bureau of statistics, in May, the purchasing managers’ index (PMI) of the manufacturing industry was 49.6%, which was 2.2 percentage points higher than that of the previous month, but still below the critical point. The overall prosperity level of the manufacturing industry has improved, but it has not yet recovered to the pre epidemic level. In May, there was great downward pressure on the zinc market, and the zinc price fell violently. With the gradual promotion of the resumption of production and work, both production and demand have recovered, and the zinc price has stopped falling and recovered, which will increase the momentum of zinc price rise in the future.

In April, auto sales hit a 10-year low

According to the statistical data of China Automobile Association, in April 2022, the production and sales of automobiles reached 1205000 and 1181000 respectively, with a month on month decrease of 46.2% and 47.1% and a year-on-year decrease of 46.1% and 47.6%; From January to April, 7.69 million and 7.691 million vehicles were produced and sold, a year-on-year decrease of 10.5% and 12.1%. In April, the automobile production and sales decreased significantly, and the sales volume of that month fell below 1.2 million, the lowest monthly level in the same period in the past decade; Both passenger cars and commercial vehicles showed a sharp decline month on month and year on year. As the main end-user in the zinc market, the production and sales of the automobile industry fell sharply, and the demand of the zinc market fell seriously. In the absence of major positive incentives, the sales volume of the automobile industry is expected to decline, and the demand of the zinc market is less than expected.

Aftermarket forecast

According to the analysts of business agency, the supply and demand of zinc market slowly recovered in May, but the overall supply recovery speed was ahead of the demand recovery speed. Affected by the control, the demand of zinc market was expected to decline, and the support for the future rise of zinc market was insufficient. In the future, with the gradual progress of the resumption of work and production, the supply and demand of zinc market grew slowly, and the zinc price is expected to stop falling and recover. However, there is limited room for the rise of zinc price, and it is expected that the zinc price will rise slightly in the future.