Zinc prices increased significantly in May

According to the Commodity Market Analysis System of Shengyishe, as of May 31, the zinc price was 24634 yuan/ton, an increase of 5.37% from the zinc price of 23378 yuan/ton on May 1; The zinc price has increased by 14.11% compared to 21588 yuan/ton on January 1st; The zinc price has increased by 21.54% compared to the lowest point of the year on February 19th, 20268 yuan/ton. In May, zinc prices reached a new high in 2024 and were at the highest level within a year. The detection position in May was at the highest level within a year, rising from the median to the mid high level within two years, reaching the median level within three years, and reaching the mid high level at the end of the month. May continued to be on the alert for over inflation within a year. The warning of excessive increase in zinc prices continues, increasing the risk of a decline in zinc prices, and the risk of a sharp drop in zinc prices in the future continues to intensify.

Domestic zinc ingot inventory slightly decreased in May

From the domestic zinc ingot inventory statistics chart for 2024, it can be seen that the zinc ingot inventory has significantly increased, and the zinc market has sufficient supply in 2024; In May, zinc ingot inventory slightly decreased, and the domestic zinc market supply was tight. The support of rising zinc prices remains.

In April 2024, China’s zinc production was 586000 tons, a year-on-year decrease of 0.8%; The cumulative production from January to April was 2.473 million tons, a year-on-year increase of 7.3%. The production of zinc in the market has decreased, and the domestic supply of zinc has tightened.

Growth in demand for zinc in the market

According to data released by the National Bureau of Statistics, China’s air conditioning production in April 2024 was 30.331 million units, a year-on-year increase of 20.0%; The cumulative production from January to April was 99.14 million units, a year-on-year increase of 17.6%. In April, the national refrigerator production was 9.336 million units, a year-on-year increase of 15.4%; The cumulative production from January to April was 32.859 million units, a year-on-year increase of 14.1%. In April, the national production of washing machines reached 9.443 million units, a year-on-year increase of 2.3%; The cumulative production from January to April was 35.462 million units, a year-on-year increase of 10.3%. In April, the national production of color televisions was 17.316 million units, a year-on-year decrease of 0.4%; The cumulative production from January to April was 60.631 million units, which remained unchanged year-on-year. The production of major domestic household appliances has increased significantly, leading to an increase in demand for zinc in the market.

Future Market Forecast

According to data analysts from Business Society, in terms of supply, the international market’s zinc ingot inventory is low, and the domestic zinc market inventory has slightly decreased. In addition, the domestic zinc market production has slightly decreased, and the supply of zinc in the market is tight, providing significant support for the rise in zinc prices; In terms of demand, the production of major household appliances has increased year-on-year, coupled with policy incentives to revive the real estate market, the domestic zinc market is expected to see a rebound in demand, and the pressure on zinc prices to rise has increased. Weak supply and strong demand are expected to lead to a high consolidation of zinc prices in the future.