Zinc price fell sharply in June

According to the data monitoring of the business agency, the zinc market fell sharply in June. As of June 30, the zinc price was 24164 yuan / ton, down 7.67% from 26172 yuan / ton on June 1 at the beginning of the month; The macroeconomic weakness intensified, the supply and demand of zinc city were both weak, and the zinc price fell sharply.

Nonferrous metal sector fell

The continued high inflation in the United States exacerbated the expectation of market recession, and the non-ferrous metal sector fell in an all-round way. It can be seen from the basic metal index and non-ferrous metal current price index of the business society that the non-ferrous metal related index has continued to decline since late April, and the basic metal index and non-ferrous metal current price index have both fallen since the end of May. The market has intensified its concern about the global economy, the macroeconomic background of the metal industry has deteriorated, and the zinc market has followed suit.

The PMI growth of the National Bureau of statistics was less than expected

 
According to the data of the National Bureau of statistics, in June, the purchasing managers’ index (PMI) of the manufacturing industry was 50.2%, up 0.6 percentage points from the previous month, returning to above the critical point. The manufacturing industry resumed its expansion, and the domestic economy slowly recovered. However, the domestic economy fell for three consecutive months, and recovered in June, but there was still a certain gap with the level of the same period last year and the growth level at the beginning of the year. The domestic economic growth was less than expected, and the demand for zinc fell.

Reduction of zinc supply

The European energy crisis continued, the start-up of zinc smelters fell, Glencore and Trafigura group significantly withdrew LME futures warehouse receipts, the remaining inventory in LME Asia warehouse was only equivalent to the global consumption for half a day, the zinc inventory fell sharply, fell to the lowest level in at least 25 years, and the zinc supply decreased significantly.

Aftermarket forecast

Business analysts believe that: the macroeconomic weakness is expected to intensify, and the continued high inflation in the United States has exacerbated the market recession expectation. It is expected that the metal price has peaked, and the support for the future metal price rise is insufficient; The supply of zinc market decreased, and the resistance to the decline of zinc price remained. The overall zinc market is weak in both supply and demand, the zinc price rise is not supported enough, and the falling space is blocked. It is expected that the zinc market will decline slightly in the short term.