World Zinc Market Ended in Deficit During Jan-Nov '17: ILZSG

SEATTLE (Scrap Monster): The latest monthly statistics published by the International Lead and Zinc Study Group (ILZSG) indicates that global zinc market deficit widened further during the initial eleven-month period of the year.

The global zinc market ended in a deficit of nearly 485,000 tonnes during January to November last year. The projected market deficit for refined zinc metal now stands at around 530,000 tonnes. During the above-mentioned period, the total reported zinc inventories have dropped by nearly 320 kt, says ILZSG.

During the first eleven months of 2017, global zinc mine production recorded modest growth of 4.8% upon comparison with the corresponding eleven-month period in 2016. The zinc mine output witnessed considerable decline in Australia, Ireland and Sweden. However, these declines were offset by production increases in other countries including Canada, Eritrea, India, Namibia and Peru.

The refined zinc metal production during Jan-Nov ’17 totaled 12.509 million tonnes, marginally lower by 0.3% when compared with the 12.542 million tonnes output during corresponding eleven-month period from January to November in 2016. Despite sharp jump in Indian output, the global output recorded decline mainly on account of lower production volumes from other countries such as Canada, China, the Republic of Korea, Peru and Thailand.

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The global demand for refined zinc metal rose marginally by 1.9% to 12.994 million tonnes during January to November in 2017, as compared with 12.748 million tonnes during the same period last year. The apparent zinc metal usage by China has increased marginally by 2.1% during the opening eleven months of the previous year. The usage remained nearly flat in Europe. The US apparent demand too remained unchanged over the similar period in 2016.

The Chinese net imports of zinc contained in concentrates increased sharply by 27% during Jan-November ’17 in comparison with the corresponding period in 2016. The country’s imports of zinc contained in zinc concentrates totaled 935,000 tonnes. The Chinese net imports of refined zinc metal rose by nearly 47% to 562,000 tonnes during Jan-Nov ’17.

The preliminary data released by the ILZSG indicates that monthly global zinc mine output totaled 1.232 million tonnes in November. The global refined zinc metal production totaled 1.234 million tonnes, whereas global zinc demand totaled 1.314 million tonnes during the month.