The International Lead and Zinc Study Group (ILZSG) released preliminary data for this year, which showed the global market for refined zinc metal was in deficit during the first four months of the year. Total reported zinc inventories also declined during that time.
The ILZSG report stated that world zinc mine production grew 7.3% for the first four months of 2017 compared to the same time last year, mostly due to increased output in China, India, Peru, Turkey and Eritrea.
Furthermore, growth in refined zinc metal production in France, Kazakhstan and India were offset by reductions in Peru, Canada and the Republic of Korea, leading to an overall worldwide increase of 1.6%.
Worldwide refined zinc metal demand grew 3.7% during this time frame, mostly due to a 42.9% recovery in apparent usage in the U.S.
China’s Effect On Zinc Prices
The ILZSG report stated: “China imported a total of 385kt of zinc contained in zinc concentrates, an increase of 58kt compared to the same period of 2016. Chinese net imports of refined zinc metal amounted to 99kt, a decrease of 114kt.”
How will zinc and base metals fare in 2017? You can find a more in-depth zinc price forecast and outlook in our brand-new Monthly Metal Buying Outlook report.
By Kyle Fitzsimmons