World Zinc Mine Production to Grow by 3.5% in 2018

SEATTLE (Scrap Monster): The Fitch research report on market outlook for zinc forecasts 3.5% surge to global zinc mine production in 2018 to total 13.7 million tonnes. Further, the output is expected to see significant jump by over 22% to total 16.8 million tonnes by 2027. The report predicts that China’s zinc production is likely to stagnate on account of dropping ore grades and stronger environmental regulations. However, China will continue to be the key player in global zinc mine production.

The Chinese zinc production is likely to edge higher from 4.6 million tonnes in 2018 to 4.7 million tonnes in 2027, recording per annum average growth of 0.3%. Despite this growth at snail’s pace, the country will continue to remain as the largest producer of zinc in the world, accounting for more than one-third of the world output in 2018.

Australian zinc mining sector will witness gradual recovery from the closure of MMG Century zinc mine over the forthcoming decade. Based on anticipated production restart at New Century Resources and Glencore’s expected restart of idled Loretta zinc mine, Fitch has revised the zinc production growth forecast for 2018 and 2019 to 12% and 8% respectively.

India is likely to emerge as a major driver of global zinc production growth, with zinc output projected to increase from 783kt in 2018 to 1.7 million tonnes by 2027. Hindustan Zinc Limited (HZL), which accounts for nearly 90% of the country’s zinc output, will witness large-scale expansion during this period.

Fitch report identifies Rampura Agucha mine in India, Red Dog in the U.S. and Antamina in Peru as the top three zinc mines of the world by volume.