Zinc market report August 2011
2011-09-15 15:25:25 【Print】
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Zinc price turned to decrease sharply in early August from the continuous increasing in July due to the dim US economy. The price sped up to decrease since August 1st and there were few deals concluded in spot market as consumers showed serious concerns on the market. Most producers were unwilling to sell at such a low price level with low margin due to the high production cost as the price was lower than expectation. Some producers only sold zinc ingot to regular consumers. Some traders and consumers could only purchase from the traders in Shanghai because the traders also hedged in the futures market, and they could make profit despite of the dropping price. Many smelters reduced production due to the serious power shortage in the south of China, and most smelters in Guangxi reduced the zinc ingot production by at least 50%. The domestic output of zinc ingot decreased in August.
