Overall, the economic downturn in Europe and America in June exceeded expectations, exacerbating market concerns about the tightening of central banks in Europe and America to hit the economy. The domestic stable growth policy continues to be released, and the market still has expectations. From the industrial perspective, the pattern of weak supply and demand for zinc prices has not been reversed. The negative feedback of high priced zinc on demand has been evident, and zinc prices have rebounded due to insufficient support for zinc prices.
In June, the overall zinc oxide market slightly declined. In the first half of this month, due to a decrease in domestic zinc inventory and a weakened impact of imported zinc, raw zinc ingots rebounded from a decline. However, due to weak downstream demand for zinc, the rise in zinc was limited, and terminal procurement was cautious, with primary demand procurement. In mid month, from the perspective of industrial chain prices, except for the narrow decline in raw material zinc ingot prices, the overall stability of prices is the main focus. In late June, after returning to the market after the holiday, zinc ingot inventory accumulated and imported zinc flowed into China, resulting in sufficient supply of zinc ingots. However, due to the impact of the international economic situation, the overall fluctuation of zinc ingots was mainly affected.
Aftermarket judgment
It is expected that the zinc oxide market will rebound after a decline in July. In terms of raw materials, overseas energy prices have rebounded, European mines have ceased production, and production may be limited. On the domestic side, the import side has rebounded, refinery maintenance has increased, supply may be limited, and zinc prices may fluctuate under pressure; On the downstream side, there are expectations of a lower operating rate for all steel tires, while production for semi steel tires is relatively active and overall remains high. There is a certain level of purchasing enthusiasm for zinc oxide, so overall, the zinc oxide market will rebound after a decline.