Zinc prices have fluctuated and risen this week

According to the Commodity Market Analysis System of Business Society, as of May 17th, the price of zinc was 23636 yuan/ton, an increase of 1.81% from the fluctuation of zinc price of 23216 yuan/ton on May 10th; The zinc price fluctuated and increased by 1.10% compared to May 1st at 23378 yuan/ton. The London LME futures market has low zinc ingot inventories, leading to a decrease in zinc market inventories and a tightening of zinc supply. Zinc prices have fluctuated and risen this week.

Low inventory of zinc ingots in the London LME futures market

According to data released by the London Metal Exchange (LME), zinc inventories in London continued to decline slightly last week, with the latest inventory level reaching 251400 tons, a three-month low. This week, zinc ingot inventories in London continued to decline slightly. On May 16th, the London LME market had a zinc ingot inventory of 259675 tons, an increase of 8800 tons. Overall, London’s zinc ingot inventory is low, and the supply of zinc in the market remains tight, with significant support from the rise in zinc prices.

WBMS: Global zinc supply shortage of 14700 tons in March 2024

The latest report released by the World Bureau of Metals Statistics (WBMS) shows that in March 2024, global zinc sheet production was 1.2434 million tons, consumption was 1.258 million tons, and there was a shortage of 14700 tons in supply. From January to March 2024, the global production of zinc sheets was 3.6539 million tons, with a consumption of 3.5464 million tons and an oversupply of 107400 tons. In March 2024, the global production of zinc mines was 1.239 million tons. From January to March 2024, the global production of zinc mines was 3.5747 million tons. The global zinc market experienced a shortage of supply in March, but there was an oversupply of zinc from January to March, with limited support for the rise in zinc prices.

Domestic zinc ingot inventory has slightly decreased

From the statistical chart of zinc ingot inventory in China in 2024, it can be seen that there was a significant increase in zinc ingot inventory in 2024, but there was a slight decrease in zinc ingot inventory in May. The supply of zinc in the domestic zinc market was tight in May, and the support for the increase in zinc prices remains.

Future Market Forecast

According to data analysts from Business Society, the international market’s zinc ingot inventory is low, while domestic zinc market inventory is decreasing. The supply of zinc in the market is tight, and the rise in zinc prices is strongly supported. However, the London futures market’s zinc ingot inventory is rising, and the supply of zinc in the market is increasing. There is limited room for zinc prices to rise, and it is expected that zinc prices will consolidate at a high level in the future.