According to the monitoring of the Commodity Market Analysis System of Shengyi Society, as of February 28th, the price of 0 # zinc was 23450 yuan/ton, a decrease of 2.07% from the zinc price of 23946 yuan/ton on February 24th.

 

POLYVINYL ALCOHOL

This week’s market analysis

 

Although the spot zinc price has generally declined this week, the overall weight has slightly increased. In terms of the spot market, it coincides with the peak period of terminal enterprise resumption of work. However, due to the pre holiday inventory preparation and the relatively abundant supply of ore and zinc ingots, zinc prices in the first half of the week were mainly adjusted. In the second half of the week, the central bank once again mentioned loose policies, and the market had positive expectations for the upcoming domestic two sessions. As a result, zinc prices successfully stopped falling and rebounded.

 

Fundamentals

This week, the profit window for zinc ore imports has closed, resulting in relatively light offers and transactions for imported minerals. However, driven by price advantages, refineries still prefer to choose domestically produced minerals as their main raw materials. In addition, according to domestic mining trends, some lead-zinc mines that were previously shut down due to reasons are expected to resume production in March, which will lead to a continuous increase in supply from the mining end. However, at the current level of processing fees, refineries are still in a loss making state, so the industry has a strong bullish sentiment towards processing fees.

 

Supply and demand side

As the supply side enters February, the restrictions on the raw material side have been reduced, and the profit situation has also improved, which has increased the production enthusiasm of refineries. However, due to the decrease in natural days, it is expected that the production in February will decline month on month.

 

From the demand side, the resumption of production by downstream enterprises after the holiday is steadily advancing, and the operating conditions of various sectors are also continuing to rebound. However, from the perspective of the terminal market, consumer transmission still needs some time, and the overall order situation is still relatively weak.

 

Inventory end

 

Zinc ingots continue to arrive, and the trend of inventory accumulation has not changed. However, as downstream enterprises gradually resume production, the increase in inventory has slowed down.

 

comprehensive analysis

 

The zinc price has successfully stopped falling and rebounded. It is expected that zinc prices will continue to maintain a strong trend next week.

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