The prospect of increased demand from China caused short-covering, which resulted in a minor increase in zinc prices of 0.06%, closing at 271.7. This hope stems from the anticipated Third Plenum of the Communist Party, which is set for July 15–18 and is anticipated to cover economic policy and reforms. Rising by 1,500 metric tonnes to 15,000 metric tonnes, the zinc stockpile in the Shanghai Bonded Zone suggests a possible supply that is awaiting advantageous import circumstances.
The Dugald River zinc mine in Australia will be closed for approximately two months for repairs, according to a recent announcement by China’s MMG Ltd. This is expected to put further strain on the already competitive market for zinc concentrates.
MMG anticipates a negligible effect on its total output in 2024 notwithstanding this suspension. Additionally, investors are speculating about how Beijing’s impending stimulus policies may affect the zinc market.
Zinc inventories at London Metal Exchange (LME) warehouses rose by 9% to reach a level not seen in almost three months, indicating an excess of metal available in the market. LME zinc stocks have recovered following a 13% decrease from February, when they were at their highest point since May 2021, or 276,100 tonnes.
