SHFE zinc inventory up 1.5 %or roughly 2400 tons. (good news I believe)
China's zinc output dropped 14.3 % in February as sulphuric acid inventory woes, raw material supply shortages and labour issues forced smelters to slash production.
Demand is at around 80 - 85 percent of normal and picking up all the time.
If zinc price drop and high TCs is causing some of Chinas zinc miners to slow down,
we could be looking at a changing narrative inside of the next quarter.
If solid evidence begins to emerge that zinc refined surplus will not emerge till 2021 because zinc concentrate production is slowing, zinc should come back over a dollar a least.
What the virus will do to zinc demand outside of China will be the big question?
Because there will be no question on China demand...Chinas economy has taken a whoopin and now they fight as hard as possible to get back to normal.