Zinc prices increased by 1.72% to settle at 228.1, fueled by growing anticipation that China, the world’s largest metals user, would announce more stimulus measures. In response to economic difficulties, China’s central bank governor announced a 50 basis point cut in the reserve requirement for banks, beginning from February 5.
Furthermore, effective of January 25, the central bank would lower interest rates for re-lending and re-discounts by 25 basis points for small businesses and the rural sector. According to the International Lead and Zinc Study Group (ILZSG), the shortfall in the global zinc market increased to 71,600 metric tons in November 2023 from 62,500 tons in October.
The total surplus for the first 11 months of 2023 was 211,000 tons, which contrasts with a deficit of 86,000 tons for the same period in 2022. China’s refined zinc production in December 2023 was 590,900 million tons per month. Monthly growth of 2.05% and annual growth of 12.38%.
The cumulative production of refined zinc in January-December was 6.622 million tons, which means an annual increase of 10.77 percent. In addition, domestic zinc alloy production was 102,900 million tons in December, up 9,600 million tons from the previous month. Technically, there are new purchases in the market and open interest increased significantly by 18.75%, reaching 3,299.
