Zinc Ingot Prices Decline Globally as Oversupply in China and US Political Shifts Weigh on Market

The global Zinc Ingot market experienced significant downward pressure during the week ending November 15th, with major markets reporting notable price declines. Prices in China decreased by 2.2% amid oversupply conditions, while the United States declining by 1% influenced by the impact of Presidential elections on base metals and commodities.

The Zinc Ingot sector in the United States witnessed market downturn, with the aftermath of the elections inciting widespread market fluctuations. The victory of Donald Trump in the presidential race led to a considerable reorganization within the commodity markets. Although certain commodities such as oil and farm products began to show recovery, base metals saw a significant drop, especially Zinc Ingot. The price of Zinc Ingot fell, a trend that may be attributed to Trump's emphasis on enhancing local manufacturing, which poses a risk to the international trade dynamics. The reaction in the base metals market was stark, exemplified by copper's most dramatic fall in months. This market behavior signals apprehension regarding potential alterations in U.S. trade policy and its consequent effects on the worldwide metal markets.

China's Zinc Ingot market witnessed mounting pressure due to substantial oversupply conditions. Chinese manufacturers are currently rushing to deliver between 30,000 and 40,000 metric tons of refined zinc to Shanghai Futures Exchange (ShFE) registered warehouses before November contracts expire. The surge in deliveries has led to a dramatic increase in warehouse inventories, with recent data showing a substantial addition of 24,039 tons. This influx reflects the ongoing surplus in the world's largest market, primarily attributed to sluggish performance in China's construction and real estate sectors.

The upward trajectory of the US Dollar Index has maintained consistent pressure on the prices of LME zinc. The market's ongoing bearish outlook has further contributed to the downward movement of LME zinc prices. Moreover, Zinc Ingot stockpiles in Guangdong and Tianjin saw a notable rise, largely attributed to traders increasing warehouse deliveries, which in turn markedly raised the inventory in these regions.

Looking ahead, Zinc Ingot prices might face continued pressure due to these overlapping challenges. The oversupply conditions in China, and political uncertainties in the United States creates a complex market environment. The market's immediate future appears to hinge on how these regional challenges evolve and their collective impact on global supply chains and demand patterns. ChemAnalyst predicts a period of downward trend in the market, anticipating that the prices of Zinc Ingot will continue to fall in the upcoming weeks.