Due to the acceleration of economic recovery and the continuous high temperature, the demand for electricity is rising, resulting in the shortage of power supply in southern China. Some cities in Guangdong and Yunnan started to use electricity at off peak. This round of peak load shifting has a certain impact on some non-ferrous smelting enterprises. At present, Yunnan zinc smelters have begun to implement the power and production restriction policy, and the preliminary plan is to limit it to the middle and late June. According to the current production reduction, it is estimated that the refined zinc in Yunnan will have an impact of 12000-15000 tons in May. According to statistics, the zinc smelting capacity in Yunnan Province accounts for about 17% of the whole country. The production reduction in Yunnan will reduce the supply of domestic refined zinc, lead to insufficient supply in the zinc market, and increase the driving force of zinc price rise. Some enterprises in Guangzhou, Foshan, Dongguan, Huizhou, Zhuhai, Zhongshan, Chaozhou and other places are required to use electricity at different peak periods, and there is no plan to reduce the output of smelters in Guangdong for the time being. The overall supply of zinc market is expected to decrease, and the rising power of zinc price is increased.
Zinc price rising
According to the data monitoring of business news agency, the price of zinc fluctuated and rose in May, reaching a new high since 2019. As the price of zinc continued to rise, the market of zinc market went up all the way, and the zinc market was in the peak demand season. The demand in the future was expected to increase, and the rising power of zinc price was sufficient.
Analysis summary and Prospect
Bai Jiaxin, an analyst of business news agency, believes that: in the peak demand season of zinc market, the rising power of zinc market is sufficient, and with the economic recovery, the demand of zinc market is expected to increase; The peak of electricity consumption in summer is coming, and the peak production of Yunnan zinc ingot smelter is staggering, which leads to the decrease of refined zinc output and zinc market supply. The supply of zinc market is reduced, the demand is expected to increase, the supply of zinc market exceeds or intensifies, and the price of zinc may reach a new high. Although the national price control has a certain cooling effect on the zinc market, the basic market of the zinc market is short of supply, which makes the zinc price in a high position. The future zinc price is expected to rise in shock, and the rising trend of zinc price slows down. However, the price of zinc is difficult to reach a record high. It is expected that the price of zinc will stabilize after a short rise.