Zinc prices soared on October 14

According to the data monitoring of business agency, the zinc price soared on October 14. On October 14, the zinc price was 25086.00 yuan / ton, up 5.25% from 23835 yuan / ton on the previous trading day; Compared with the zinc price of 22686 yuan / ton on October 1 at the beginning of the month, an increase of 10.58%. Zinc prices soared to the highest price in 17 years.

Reduction of zinc production by 50% in three European smelters

According to foreign news on October 13, nyrstar said that with the significant increase in power costs and carbon emission related costs, it is no longer economically feasible to operate the plant at full capacity. It will cut zinc production at its three European smelters by 50% from Wednesday to cope with soaring electricity costs. Nyrstar belongs to Trafigura group and is one of the largest zinc metal producers in the world. It is understood that the total output of its three smelters is 700000 tons, accounting for more than 5% of the world. A 50% reduction in production is equivalent to affecting the global zinc production by 2.5%. The news of sharply reducing the output of zinc smelters was too stimulating, and the supply expectation of zinc market fell sharply, stimulating the sharp rise of zinc price.

Market Overview

Business analysts believe that under the background of intensified power rationing and upgrading, the output of zinc smelters is limited and the supply of zinc market is tight. This time, the output of European smelters is reduced by 50%, which has exacerbated the supply shortage of zinc market and stimulated the sharp rise of zinc price. In the future, it is difficult to reduce the power cost in the short term, the commencement of zinc smelters is not optimistic, the supply of zinc is expected to be in short supply, and the zinc market is expected to rise in the long term.