Post holiday zinc prices fear high prices and fall back

According to the Commodity Market Analysis System of Shengyishe, as of May 8th, the price of zinc was 23076 yuan/ton, a fluctuation decrease of 1.29% compared to the zinc price of 23378 yuan/ton on May 1st. After the holiday, the high price of zinc has fallen. Zinc mining and zinc enterprises have restarted, increasing the supply of zinc in the market, increasing the pressure on zinc prices to fall. After the holiday, zinc prices fear high prices and fall back.

Tara Zinc Mine in Ireland Restarts

Swedish mining giant Boliden announced on May 3rd that it will restart production at the Tara zinc mine in Ireland, which has been undergoing maintenance and upkeep since its shutdown in 2023. According to Boliden’s plan, the mine will gradually increase production in the fourth quarter and is expected to reach full capacity production by January 2025. This production increase plan will help increase the supply of zinc in the global market and may have a certain impact on market prices. The supply of zinc in the market is increasing, and the pressure on the decline of zinc prices is increasing.

Resumption of Budel Zinc Smelting Project in the Netherlands

The Budel zinc smelting project in the Netherlands has announced plans to resume production, with plans to resume production in mid. The smelter is one of Tok’s zinc smelters in Europe, with an annual production capacity of approximately 300000 tons. Zinc smelting enterprises are resuming production, and the supply side of the zinc market is expected to recover. The tight supply side pattern is easing, and the supply of zinc in the market is increasing, increasing the pressure on the decline of zinc prices.

The processing cost of zinc concentrate has decreased

From the trend chart of zinc concentrate processing fees, it can be seen that the processing fees for zinc concentrate continued to decline in 2024. The decreasing trend of zinc concentrate processing fees accelerated in April, and the processing fees for zinc concentrate significantly decreased in May. The processing cost of zinc concentrate has decreased, the enthusiasm of zinc enterprises to start production has decreased, the supply expectation of zinc market has decreased, and there is some upward support for zinc prices.

Future Market Forecast

According to data analysts from Business Society, zinc mines and smelters in the international market have successively announced plans to resume production, leading to short-term supply growth in the zinc market; The processing cost of zinc concentrate has decreased, the production enthusiasm of zinc smelting enterprises has decreased, and the expected future supply of zinc in the market has decreased. In the future, with an increase in short-term supply and an expected decline in zinc prices, the growth of long-term zinc supply is limited, and zinc prices still have upward support. It is expected that zinc prices will fluctuate and consolidate.