World Zinc Market Ended at 495 kt Deficit in 2017

SEATTLE (Scrap Monster): The initial data compiled by the International Lead and Zinc Study Group (ILZSG) shows deficit of 495 kt for global refined zinc metal market during the entire year 2017. During the year, the total zinc inventory totaled 1025 kt, registering decline of 350 kt, over the prior year.

In 2017, global zinc mine production recorded modest growth of 3.6% upon comparison with the year before. The zinc mine output in India has surged higher significantly by nearly 34% in 2017. The rise in output by Peru and Eritrea more than offset the significant reduction in Australian output. Also, the supply of zinc concentrates edged higher in Europe, Canada, Mexico and Turkey.

The refined zinc metal production remained essentially flat in 2017. The production during the year totaled 13.724 million tonnes, as compared with 13.739 million tonnes in 2016. The sharp 30.4% surge in production in India was more or less offset by production declines elsewhere in Canada, China, Japan, the Republic of Korea and Peru.

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The global demand for refined zinc metal rose marginally by 2.6% to 14.219 million tonnes in 2017, as compared with 13.861 million tonnes in 2016. The ride in demand was primarily on the back of increased usage by Australia, Brazil, China, Japan and Taiwan. The European demand dragged lower by 0.5%. The US recorded modest 0.6% rise in r4efined zinc metal usage during the year.

The Chinese net imports of zinc contained in concentrates increased sharply by 26% during the previous year, in comparison with 2016. The country’s imports of zinc contained in zinc concentrates totaled 1029 kt. The Chinese net imports of refined zinc metal rose sharply by nearly 64% to 661,000 tonnes during the year.

The preliminary monthly data released by the ILZSG indicates that global zinc mine output totaled 1.181 million tonnes in December 2017. The global refined zinc metal production totaled 1.220 million tonnes, whereas global zinc demand totaled 1.269 million tonnes during the last month of 2017.