In March, the zinc market fell all the way, and the worst-performing metal in the colored plates

First, the price trend
According to the statistics of business clubs, the zinc price has been falling all the way in March 2018. As of March 31, the price of zinc fell to 24,832.50 yuan per ton, which was 5.85% lower than the price of 2,6375.00 yuan per ton at the beginning of the month (March 1). It is the metal that has fallen the most in the non-ferrous metal sector during the same period. Overall, zinc prices fell by 5.85% in March and rose by 6.00% year-on-year. Zinc prices have a tendency to converge with 2017 prices.

Second, the market trend analysis

Products: The International Lead and Zinc Research Group (ILZSG) reported that in 2018, the global zinc production capacity will increase by 880,000 tons, and lead production capacity will increase by 123,000 tons. Joao Jorge, director of market research and statistics at ILZSG, said that due to zinc mining and project expansion, the tight market conditions for the global zinc market will ease this year.

Inventory: As of March 31, the Shanghai Futures Exchange futures zinc warehouse receipts 42396 tons, an increase of 4,987 tons from the beginning of March 37, inventory 37,409 tons. Futures zinc stocks rose, zinc supply shortage pressure fell, and the zinc price was bearish.

Macroeconomics: According to the latest data released by the National Bureau of Statistics, in the January-February period, the total profit of industrial enterprises above designated size reached 968.9 billion yuan, a year-on-year increase of 16.1%. In 41 industries, the profit of non-ferrous metal smelting and rolling processing industry dropped by 11.9%. Non-ferrous smelting profits fell, forcing the zinc price downward pressure to increase, negatively affecting the zinc market.

International Business: Bunker Hill Mining of Toronto, Canada announced that it will restart a 100-year-old mine in Idaho. The company stated that it will consider reopening the mine before the end of 2018 and carrying out large-scale lead-zinc mine production within about two years.

Third, the market outlook

In March, the general trend of zinc prices fell, mainly due to the gradual increase in supply in the fundamentals of supply and demand, and the weak demand for various degrees, and on the basis of this caused many bad news in the market. Business analysts believe that: supply and demand fundamentals, zinc supply shortage has eased, the recent decline in zinc prices, but the zinc market is still in short supply in 2018, the recent price reduction is more like the release of 2017 high zinc pressure Instead of the lack of zinc demand. After April, as zinc demand continues to increase, there will still be a price recovery period for zinc prices in 2018, and the price may reach the peak of zinc price in 2017.