World Zinc Market Ended in 401kt Deficit During Jan-Oct '17

SEATTLE (Scrap Monster): The preliminary supply and demand data compiled by the Lisbon, Portugal-based International Lead and Zinc Study Group (ILZSG) suggests further widening of deficit of global market for refined zinc during the first ten months of 2017.

According to data compiled by the trade body, the global zinc market ended in a deficit of nearly 401,000 tonnes during January to October this year. Based on the assumption that the current trends will continue to prevail during rest of the year, the global refined zinc market is estimated to post a full-year deficit of over 481,000 tons, said analysts. The total reported zinc inventories have declined by 282,000 tonnes during the above-mentioned period, ILZSG noted.

During the first ten months of 2017, global zinc mine production reported modest growth, recording a jump of nearly 3.8% upon comparison with the corresponding ten-month period in 2016. This was mainly on the back of increased mine output from major producing countries including Eritrea, India, Peru and Turkey. The rise in output from these countries was partially offset by mine output declines in Australia and the US.

The refined zinc metal production during Jan-Oct ’17 totaled 11.277 million tonnes, marginally lower by 0.6% when compared with the 11.348 million tonnes output during corresponding ten-month period from January to October in 2016. The refined zinc metal output from India rose significantly over the previous year. Brazil too recorded jump in output. On the other hand, refined output reported sharp declines in other producing countries including Canada, the Republic of Korea, China, Peru and Thailand.

The global demand for refined zinc metal rose marginally by 1.2% to 11.678 million tonnes during January to October this year, as compared with 11.543 million tonnes during the same period last year. The apparent zinc metal usage by China remained unchanged during the first ten-month period of the current year. The usage recorded marginal year-on-year decline of 0.5% in Europe. Meantime, the US apparent demand surged higher by 2.9% over the previous year.

The Chinese net imports of zinc contained in concentrates increased sharply by 35.7% during Jan-October ’17 in comparison with the corresponding period in 2016. The country’s imports of zinc contained in zinc concentrates totaled 856,000 tonnes. The Chinese net imports of refined zinc metal rose by nearly 23% to 440,000 tonnes during Jan-Oct ’17.

The preliminary data released by the ILZSG indicates that monthly global zinc mine output totaled 1.207 million tonnes in October. The global refined zinc metal production totaled 1.212 million tonnes, whereas global zinc demand totaled 1.248 million tonnes during the month.