Zinc prices rose by 0.14% to 288.2 due to China’s economic stimulus measures, including liquidity injections, mortgage rate cuts, and easing home purchase restrictions. The central bank announced plans to reduce mortgage rates for existing home loans before October 31.
However, zinc inventories in warehouses monitored by the Shanghai Futures Exchange dropped to 79,980 metric tons, causing supply concerns. China’s Caixin General Manufacturing PMI fell to 49.3 in September 2024, the lowest level since July 2023, due to a renewed downturn in new orders.
The global refined zinc market is expected to face a 164,000 metric ton deficit in 2024 due to reduced output in Europe, China, Canada, and Peru. Production increases in Australia, Mexico, and Congo may offset some of these declines.
