Zinc price fell in shock this week

According to the data monitoring of the business community, the zinc price was 23894 yuan/ton as of December 26, down 2.70% from 24556 yuan/ton on December 18. Zinc supply is expected to increase and demand is less than expected. This week, zinc prices fell in shock.

European gas price ceiling is set, and zinc smelting output is expected to increase

All EU countries agreed that the price ceiling of natural gas is set at 180 euros/megawatt hour, which is far lower than the price proposed by the EU last month. Natural gas prices fell, zinc smelting costs fell, zinc smelting output is expected to increase, and European zinc supply is expected to increase.

Demand is less than expected

The domestic prevention and control measures for zinc have changed, but the macroeconomic recovery is less than expected. The output of domestic factories has slowed down, retail sales continue to decline, and the supply and demand of zinc market have not met expectations. The impact of the epidemic has affected some employment. Most enterprises plan to take holidays in advance. The off-season effect may be greater than in previous years, and the downward pressure on zinc prices has increased.

Future market forecast

According to the data analysts of the business association, the cost of zinc smelting in Europe has decreased, the supply of zinc is expected to increase, while the recovery of the domestic market is less than expected, and the demand of zinc is less than expected. In general, the expected increase in zinc supply and demand is less than expected, and the zinc price is expected to fall slightly in the future.