Zinc prices have risen significantly this week
| Thiourea |
According to the Commodity Market Analysis System of Business Society, as of March 8th, the zinc price was 21138 yuan/ton, a significant increase of 2.97% compared to February 29th, when the zinc price was 20528 yuan/ton. South Korean zinc smelters are reducing production, leading to a decrease in expected zinc ingot supply. The Federal Reserve is expected to lower interest rates, causing a decline in the US dollar index. China has entered the traditional peak season of “gold, silver, and four”. The decrease in supply, combined with macroeconomic benefits, has boosted the zinc market and led to a significant increase in zinc prices.
South Korean zinc smelters reduce production
According to foreign news on March 6th, South Korea’s Young Poong Corp stated that it has reduced the production of its Seokpo zinc smelter by one-fifth. The Seokpo zinc smelter produces 400000 tons annually and is the sixth largest zinc smelter in the world. A large-scale production reduction or complete closure will reduce the expected surplus of 300000 tons this year, leading to a shortage in the zinc market. The expected reduction in zinc supply in the market has increased support for the rise in zinc prices.
Federal Reserve cuts interest rates
Federal Reserve Chairman Powell reiterated in his speech to Congress on Wednesday that he expects interest rates to start falling this year, and Powell’s speech sparked a positive reaction in the market. The stock market rose, the yield of US treasury bond bonds fell, the US dollar index declined, the international macro-economy was favorable, and the support for the rise of zinc price was increased.
Domestic macroeconomic benefits
China has entered the traditional consumption peak season of “gold, silver, and four”, and demand recovery is imminent, boosting the rebound of non-ferrous metals. During the Two Sessions, the market is waiting for good news, and the overall macroeconomic sentiment is warming up. The domestic macroeconomic situation is positive, the non-ferrous metal market is positive, and the support for the rise of the zinc market is increasing.
Future Market Forecast
According to data analysts from Business Society, in terms of supply, zinc smelters are reducing production, leading to a decrease in the expected supply of zinc in the market; In terms of demand, the traditional peak season in the zinc market, combined with positive news during the two sessions and the stimulus effect of the Federal Reserve’s interest rate cut, has led to an expected rebound in demand for zinc. In the future, the supply of zinc in the market has decreased and demand has rebounded. It is expected that the zinc market will fluctuate and rise in the future.
| http://www.thiourea.net |