Latest Update in the China Zinc Market

Looking forward, according to SMM research, the production reduction of Chinese smelters in February 2023 will be less significant than in the same period in the previous year based on the current production scheduling, hence refined zinc output will not fall palpably.

Affected by the expectations of improving domestic consumption, both SHFE nickel and LME nickel prices increased before the Chinese New Year holiday. During the CNY holiday, SHFE stopped trading and LME nickel prices fluctuated at a high level within the rage of $28,000-29,800/mt during January 23 to January 27.

SMM offices will be closed for the Chinese New Year holiday from January 21 to January 27, 2023.

This is a roundup of China's metals weekly inventory as of January 20.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on January 20, 2023

Zinc prices are expected to fluctuate at high levels.

Almost no zinc oxide enterprises will maintain operation next week during the CNY holiday.

Taken together, inventories in Shanghai, Guangdong and Tianjin rose 12,200 mt, and inventories across seven major markets in China gained 13,700 mt.