Zinc prices fell first and then rose in February

According to the Commodity Market Analysis System of Business Society, as of February 29th, the price of zinc was 20528 yuan/ton, a decrease of 1.82% from the zinc price of 20908 yuan/ton on February 1st; The zinc price has increased by 1.28% compared to February 19th, 20268 yuan/ton. In February, the zinc market crossed the Spring Festival. Prior to the Spring Festival, downstream enterprises in the zinc market had increased parking, resulting in weak demand for zinc. Inventory in the London and Shanghai futures markets increased significantly, leading to an increase in zinc supply and a significant fluctuation in zinc prices; After the holiday, demand for zinc in the market slowly rebounded, inventory in the zinc market fell, and zinc prices stopped falling and rose.

London LME zinc ingot inventory increase

During the Spring Festival, LME zinc ingot inventory in the London futures market accumulated significantly. As of February 19th, LME zinc ingot inventory was 270050 tons, a significant increase from February 6th inventory of 196775 tons. After the holiday, zinc ingot inventory slightly decreased. Overall, the supply of zinc ingots in the London futures market increased in February, and the supply of zinc in the international market increased. Zinc prices fluctuated and fell before the holiday, but rebounded after the holiday.

Increase in zinc ingot inventory in Shanghai futures market

In February, the zinc ingot inventory in the Shanghai futures market increased significantly, with a slight decrease in zinc ingot inventory in the latter half of the year. Domestic zinc ingot inventory increased significantly, and the supply of zinc in the market increased. In February, zinc prices fluctuated and fell. After the holiday, as demand rebounded, zinc prices stopped falling and rebounded.

Slow increase in demand after holidays

Before the Spring Festival holiday, downstream enterprises in the zinc market parked more, resulting in weak demand for zinc. After the Spring Festival holiday, downstream enterprises slowly resumed production, and demand for zinc slowly increased. However, downstream enterprises have not fully resumed production, and the overall production did not meet market expectations. As a result, zinc prices fluctuated and fell overall in February. Insufficient demand after the holiday, insufficient support for the rise of the zinc market, and strong fluctuations in the zinc market in February.

Future Market Forecast

According to data analysts from Business Society, zinc ingot inventories in the London futures market LME and Shanghai futures market increased significantly in February, leading to an increase in zinc supply in the market; Downstream enterprises resumed production after the holiday, coupled with a warming macroeconomic environment, the demand for zinc in the market has rebounded. Overall, the zinc market saw a double increase in supply and demand in February, with zinc prices falling first and then rising. However, downstream construction did not meet market expectations, and the support for zinc price increases was insufficient. It is expected that zinc prices will fluctuate and consolidate in the future.