Fitch Solutions Foresees Multi-Year Uptrend for Zinc Output

SEATTLE (Scrap Monster): The latest industry report published by Fitch Solutions suggests recovery in global zinc mine output in coming years, after recording continuous decline over the past few years. Also, 2021 will mark the beginning of a multi-year uptrend in output, the report said. It must be noted that the output had witnessed a contraction of almost 10% between 2013 and 2020.

According to Fitch, rising zinc prices will boost expansion of existing projects and investment in new projects. It sees chances of a few idled capacities getting restarted. The global zinc mine production will grow at an annual average rate of 1.8% over the next decade, as compared with 0.2% during the previous decade.

China is expected to remain as the world’s largest zinc producer, although its share of global production is likely to drop from 29% in 2021 to nearly 26% in 2029. The declining ore grades and stricter environmental regulations will lead to stagnation of the country’s zinc mine production over the coming years.

Meantime, Peru will remain a leading zinc concentrate producer over the coming years. Also, Australia is expected to maintain its positive trajectory. The ratings agency foresees the country’s zinc output to increase from 1.4mnt in 2021 to 1.6mnt in 2029, recording an average annual growth of 2.4%.

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