Zinc prices declined Today to 231.70, as demand fell short of estimates amid a slowing global economy. The International Lead and Zinc Study Group (ILZSG) predicted that in 2023 there will likely be a shortfall on the world market for refined zinc.
The International Lead and Zinc Study Group ILZSG predicted that in 2023, there will be a shortage of 45K tonnes of refined zinc metal because of a greater demand than supply.
According to data, social stocks of zinc ingots in seven important Chinese markets totaled 114,900 metric tonnes as of Apr 28, down 21,600 metric tonnes from Apr 24 Monday and 21,800 metric tonnes from the previous week.
Shanghai’s inventory shrank significantly as a result of the decline in zinc prices, which increased downstream purchasers’ desire to buy as well as their need to refill.
The market arrivals in Guangdong decreased marginally, while the daily the outflow from the warehouses remained constant at 1,500 metric tonnes, causing a sharp decline in local inventory.
Although there are more visitors arriving in Tianjin, downstream demand has also increased. Because of the keenness of products owners to sell and the flurry of market activity, Tianjin’s inventory level slipped. Overall, the inventory in Shanghai, Guangdong, and Tianjin decreased by 19,500 metric tonnes, and it decreased by 21,600 metric tonnes across China’s seven key markets.
Technically, the market is experiencing new selling as open interest increased by 7.70 percent to settle at 4050, while prices are decreased -4.25 rupees. Currently, Zinc is receiving support at 230.6, and a move below that level could result in a test of 228.5 levels. A move above 234.40 could result in a test of 240.1 levels.