Zinc prices have stopped falling and consolidated this week

Zinc prices have stopped falling and consolidated this week

According to the Commodity Market Analysis System of the Business Society, as of October 27th, the zinc price was 21122 yuan/ton, an increase of 0.12% compared to October 20th, when the zinc price was 21096 yuan/ton; The zinc price decreased by 3.60% compared to 21910 yuan/ton on October 1st. The zinc market is playing a long short game, with macroeconomic data rebounding. This week, the zinc price has stopped falling and consolidated.

US Manufacturing PMI Record High in October

After output stagnated in August and September, US manufacturing and service industry activity expanded slightly in October. On October 24th, according to the latest data from S&P Global, the Markit manufacturing PMI in the United States initially hit a six-month high of 50 in October, surpassing expectations of 49.5 from 49.8. The boundary between prosperity and decline is 50. The initial PMI of the Markit service industry in the United States in October was 50.9, setting a three-month high and exceeding expectations of 49.9. In August, it was 50.1. The initial value of Markit’s comprehensive PMI in the United States in October was 51, setting a new three-month high, with an expected 50, compared to the previous value of 50.2. The manufacturing PMI in the United States unexpectedly reached a new high in October, with an initial return to expansion in six months. Market expectations for further interest rate hikes by the Federal Reserve have decreased, boosting the rebound of non-ferrous metals and stabilizing the zinc market.

Euro zone comprehensive PMI hit a new three-year low in October

The Eurozone Comprehensive Purchasing Managers’ Index (PMI) released by Standard&Poor’s Global for October fell to 46.5 from 47.2 in September, significantly below the boom and bust line of 50, reaching a new low in 35 months, indicating an accelerated decline in economic activity. The initial value of the Eurozone Manufacturing Purchasing Managers’ Index (PMI) for October was 43.1, lower than September’s 43.4 and the lowest in nearly three months. The market had originally expected it to rebound to 43.7; The initial value of the manufacturing output index remains unchanged at 43.1, but it is still below the 50 boom and bust line. PMI data shows that the economic situation in the eurozone is getting worse and worse. Almost all sub indices are falling. It is expected that the eurozone will experience a technical recession in the second half of the year, increasing the risk of negative growth for two consecutive quarters. The European economy is weak, which is bearish for the non-ferrous metal market, and the downward pressure on the zinc market is increasing.

Future Market Forecast

According to data analysts from Business News, the macroeconomic index in the United States has rebounded, while the macroeconomic weakness in Europe has intensified. Macroeconomic expectations are mixed, and overall macroeconomic expectations have weakened. The non-ferrous metal market has stopped falling and rebounded, and the downward pressure on the zinc market has weakened. Zinc prices have stopped falling and consolidated; Although October is in the traditional peak demand season, the construction of galvanized enterprises is relatively weak compared to previous years, and the characteristics of the peak season are not obvious. Zinc ingot inventory is low, LME zinc ingot inventory has plummeted, and domestic inventory is also operating at a low level, weakening the supply of zinc in the market. In the future, both supply and demand are weak, and there is insufficient support for the rise of the zinc market. Macroeconomic expectations are mixed, and the downward pressure on the zinc market is weakened. It is expected that the zinc price will fluctuate and consolidate in the future.