Zinc prices fell -0.91% to settle at 228.45 in December as a result of China’s official PMI dropping to 49 from the previous month, which heightened expectations of further government support. With expectations of early interest rate reductions by major central banks and a more complete economic recovery in China, the world’s largest zinc consumer, the industrial outlook improved.
The worldwide zinc market deficit decreased to 52,500 metric tons in October from 62,000 tons in September, according to data from the International Lead and Zinc Study Group (ILZSG). Nonetheless, a surplus of 295,000 tons was recorded for the first ten months of 2023 as opposed to a deficit of 33,000 tons for the same time in 2022.
China’s monthly production of refined zinc fell by 4.23% to 579,000 metric tons in November 2023. The year-over-year rise was 10.62%, reaching approximately 6.03 million metric tons from January to November, notwithstanding this fall. With open interest falling by -8.4% to close at 4341, the zinc market is technically in a lengthy liquidation.
