Zinc price fell nearly 800 yuan/ton on the 31st

According to the data of the business agency, the economy was weak, the metal plate fell generally, and the zinc price led the decline on the 31st. As of October 31, the zinc price was 23730 yuan/ton, down nearly 768 yuan/ton, or 3.13%, from 24498 yuan/ton on the previous trading day; Shanghai futures zinc closed at 22610 yuan/ton, down 5.4%. In the near future, the current price of nonferrous metal plate continued to fall, and the current zinc price fell sharply. On the 31st, the zinc price led the metal plate down.

Manufacturing Purchasing Manager Index in October

According to the data released by the National Bureau of Statistics, the manufacturing purchasing manager index (PMI) in October was 49.2%, down 0.9 percentage points from the previous month. In October, affected by the frequent outbreaks of domestic epidemics, China’s purchasing manager index fell back, the PMI of energy intensive industries fell to the contraction range, and the demand for nonferrous metals contracted significantly. The demand of zinc market shrinks, and the downward pressure of zinc price increases.

Increase in domestic zinc concentrate processing cost

As of October 31, the domestic zinc concentrate processing fee was 4500-5000 yuan/ton, 500-800 yuan/ton higher than that in September, and 1000 yuan/ton higher than that in June, 3500-3800 yuan/ton. The zinc concentrate processing fee continued to rise significantly, and the smelting profits became more and more rich. The zinc smelting enterprises’ enthusiasm to start the business rose, and the supply of zinc was expected to increase. Recently, the epidemic situation around the country has increased, and the demand was slightly affected. Weak demand and supply warmed up, and the downward pressure on zinc price increased.

Future market forecast

According to the data analysts of the business community; Macroeconomic weakness and contraction, non-ferrous metal plate prices fell; The processing cost of zinc concentrate rises sharply, the supply of zinc ingots is expected to increase, the demand for zinc ingots remains weak as the supply increases, and the downward pressure on zinc price increases; Although the sharp drop in European natural gas prices has limited impact on the supply of zinc smelting in Europe, the cost of European zinc smelting enterprises has declined, and the zinc price has a certain negative effect; In the future, the recent epidemic situation has worsened, the processing cost of zinc concentrate has continued to rise, and the supply of zinc market has increased and the demand is weak. However, in November, the European Glencore zinc smelting production is expected to stop production for maintenance, and the zinc market is still supported by growth. It is expected that the zinc price will be adjusted in a wide range in the short term.