Zinc price in July

According to the Commodity Market Analysis System of Shengyi Society, as of July 31st, the zinc price was 22296 yuan/ton, an increase of 0.17% compared to the zinc price of 22258 yuan/ton on July 1st. In July, the market was immersed in a positive atmosphere of “anti internal competition”, and the Shanghai zinc price broke the previous low consolidation deadlock, successfully filling the gap and repairing the gap.
In terms of raw materials
The overall processing fee for zinc concentrate remains stable, and market transactions are mainly based on the execution of contracts signed in the early stage. The transaction volume in the imported zinc concentrate market is slightly sluggish, and the price comparison between domestic and foreign markets has shown a weakening trend this week. As a result, the processing fees for imported ore have slightly increased.
Supply and demand side
The situation of zinc ingot premium has undergone significant changes, showing a trend from positive to negative, which reflects a certain degree of adjustment in the market supply and demand relationship. From a market perspective, this indicates that the supply of zinc ingots in the spot market is relatively abundant, and the bargaining power of buyers in transactions has been improved. It is worth noting that there is a certain contrast between the downward trend of the premium and the upward trend of prices. This may be because some traders have appropriately lowered their premium quotes in order to accelerate shipment speed and promote the growth of actual trading volume.
The demand for die-casting zinc alloys in downstream industries such as automobiles and home appliances has shown mediocre performance. Although new car models continue to be launched in the automotive industry, the overall market consumption lacks strong momentum, and the sales growth trend is slow, which has prevented a significant increase in demand for die-casting zinc alloy parts. On the one hand, the home appliance industry is affected by the saturation of the market, and on the other hand, it is in the off-season of consumption. Therefore, production enterprises adopt a cautious attitude towards raw material procurement, mostly purchasing according to actual demand to maintain a low inventory level.
Future forecast
August is a period of transition between peak and off peak seasons in the industry. As for the third quarter, the overall policy situation shows a cautious and optimistic trend. However, from a fundamental perspective, the expectation of increased supply and weak demand has not changed. Overall, the possibility of zinc prices maintaining a volatile trend is greater than a decline.