Zinc prices fluctuate and fall after the holiday
According to the Commodity Market Analysis System of the Business Society, as of October 12th, the zinc price was 21462 yuan/ton, a decrease of 2.04% compared to the zinc price of 21910 yuan/ton on October 1st. The panic in the real estate market has intensified, with poor demand expectations for zinc in the market. After the holiday, zinc prices have fluctuated and fallen.
Global zinc market oversupply
According to data released by the International Lead and Zinc Research Organization (ILZSG), the global refined zinc market may experience surplus in 2023 and 2024. ILZSG stated that there will be an excess of 248000 tons of zinc in 2023 and an excess of 367000 tons in 2024. The global demand for refined zinc will increase by 1.1% to 13.59 million tons in 2023, and by 2.5% to 13.93 million tons in 2024. The global refined zinc production is expected to increase by 3.7% to 13.84 million tons in 2023, and by 3.3% to 14.3 million tons in 2024. The supply and demand in the zinc market are slowly increasing, but the growth rate of supply is significantly faster than that of demand, exacerbating the oversupply in the zinc market.
Increased panic in the real estate market
On the evening of September 28th, Evergrande Group announced that Xu Jiayin, the chairman of the company’s board of directors, had been investigated through mandatory measures due to suspected illegal activities. Chinese real estate giant Country Garden announced that its debt repayment ability is limited and it will launch a debt restructuring plan. Many leading real estate developers in China are facing increasing financial pressure recently, with their astronomical debt levels highlighting bankruptcy concerns in this industry. The panic in the real estate market has intensified concerns about domestic demand, and the expectation of demand in the zinc market has decreased.
Future Market Forecast
Data analysts from Business Society believe that the global zinc market has an overall oversupply, while panic in the domestic real estate market has intensified. The demand for zinc in the market is expected to be poor, and the support for zinc prices is weakened. It is expected that zinc prices will fluctuate and fall in the future.
| http://www.sulfamic-acid.com |