Zinc prices stayed unchanged at 228.1, with support from a reduction in bank reserves in China, the world’s largest metals consumer. With an estimated $140 billion injected into the banking system, China’s central bank announced an important cut in the cash reserves that banks are required to hold.
The Chinese cabinet promised more steps to support market stability. Such as more capital market infusions of medium- and long-term funds. The global zinc market deficit increased from 62,500 metric tonnes in October 2023 to 71,600 metric tonnes in November 2023. According to data from the International Lead or Zinc Study Group (ILZSG).
Nonetheless, the ILZSG reported a 211,000-ton surplus for the first 11 months of 2023. A notable change from the 86,000-ton deficit for the same period in 2022.
China exceeded forecasts and produced 590,900 metric tonnes of refined zinc in December 2023. Up 2.05% from the previous month and 12.38% from the previous year. The total amount of refined zinc produced in the year was 6.622 million metric tonnes.
A strong increase of 10.77% from the previous year. Furthermore, the amount of zinc alloy produced domestically in December increased by 9,600 metric tonnes from the previous month to 102,900 metric tonnes.
Zinc prices remain at 228.1, but support is visible at 227; a breach at that level could prompt a test of 225.7. Resistance on the upside appears at 229.9; a breakthrough there could propel prices as high as 231.5.