Zinc price in May

According to the Commodity Market Analysis System of Shengyi Society, as of May 30th, the zinc price was 22738 yuan/ton, a decrease of 0.72% from the zinc price of 22904 yuan/ton on May 1st. The zinc price showed a frequent fluctuation and continuous downward trend in May.
The tight supply chain in the copper market is transmitted to the zinc market (the shortage of copper concentrate triggers a linkage effect of basic metals).
In terms of raw materials
The cost support has weakened, and the processing cost of zinc concentrate has dropped to the range of 21500-22000 yuan/ton (driven by the decline in energy prices), weakening the price bottom support.
Supply and demand side
Supply-demand imbalance
Supply side: Shanghai Futures Exchange zinc inventory has decreased to 2053 tons, but LME zinc inventory has also decreased to 170325 tons, reflecting a global supply contraction.
On the demand side, downstream industries such as galvanizing and alloys mainly rely on essential needs for procurement, with inventory turnover days reduced to 7-10 days (in Zhejiang and Guangdong regions).
Future forecast
From a fundamental perspective, the current market presents a pattern of increased supply and decreased demand. With the gradual increase in zinc ingot production, it is expected that the social inventory of zinc ingots may begin to accumulate, which may weaken the support for zinc prices and lead to certain downward pressure on zinc prices.