According to the data monitoring of the business agency, last week’s zinc price rose first and then fell. The overall zinc price fell slightly, and the zinc market lost its support. As of May 225, the spot price of zinc was 16800.00 yuan / ton, down 0.85% from 16943.33 yuan / ton at the beginning of the week.

Zinc stock in LME Market

Product inventory increase / decrease time

Zinc 106575-250 May 22

Zinc 106825-450 May 21

Zinc 107275 8900 May 20

Zinc 98375-250 May 19

Zinc 98625-350 May 18

It can be seen from the table that last week, the stock of zinc ingots in LME market rose sharply, and the stock of international zinc market rose sharply. Since May, the international zinc market has resumed production, the supply expectation of international zinc market has risen slowly, and the supply expectation of future zinc market is sufficient.

The policy is not as good as expected

At 9 a.m. on May 22, Premier Li Keqiang, on behalf of the State Council, made a report on the work of the government to the third session of the 13th National People’s Congress. This year’s report on the work of the government does not set a specific target for the annual economic growth. Moreover, the adjusted targets in the government report are also quite different from expectations. The new investment in the traditional infrastructure is limited, and it is not as good as market expectations. The increase of infrastructure projects is not as expected, the demand of zinc city is not as expected, and the rising power of zinc city is insufficient.

Analysis, review and Prospect

Bai Jiaxin, an analyst of business club, believes that since late March, the domestic zinc price has slowly recovered, and the demand for downstream enterprises to resume work and production is the main driving force for the rise of zinc price, but the future zinc price is more driven by the expectation of the future macroeconomic recovery, and the favorable infrastructure and policies are the main driving force for the macro-economic recovery. At last week’s two sessions, the government’s work report did not have a clear economic growth target, which on the one hand reflected the bad economic environment, on the other hand, new infrastructure projects are not the first choice for macro-control. However, the lack of new infrastructure projects has seriously affected the demand expectation of zinc market, and the demand expectation of zinc market in the future is insufficient and the supply expectation is rising. Generally speaking, the supply of zinc in the future is sufficient, while the policy benefits are not as good as expected, which leads to insufficient demand expectation, and the zinc price loses the support of rising. It is expected that the zinc price in the future will fluctuate and adjust, and the zinc market will have certain downward pressure.