Refined zinc market to see 273,000 mt surplus in 2013:
London (Platts)–25Apr2013
Global output of refined zinc metal is expected to exceed usage by 273,000 mt in 2013, according to a forecast by the International Lead & Zinc Study Group Thursday. Global zinc mine production is expected to rise by 2.3% to 13.92 million mt in 2013, the ILZSG in a statement. As with lead, official data indicates that supplies of zinc concentrates in China are more than sufficient to meet current needs.
Mine production in China is therefore forecast to increase by a comparatively modest 4.7% this year. “In 2013, an overall forecast rise in refined zinc metal production of 5.2% to 13.25 million mt will be driven primarily by an expected 9.7% increase in China,” the ILZSG said. In Europe, the restart of the Porto Vesme refinery in Italy will be the primary influence behind a rise of 1.9%, it added.
Output is also expected to be higher in Australia, Brazil, India, Japan, South Korea and Peru. The industry body predicts that after falling by 3.3% in 2012, global demand for refined zinc metal will rise by 5.2% to 12.98 million mt in 2013. Expected growth of 6.8% in China will be primarily influenced by infrastructure investment in central and western provinces and further growth in demand in the automotive, machinery and white goods sectors.
“Continued economic difficulties are expected to restrict growth in Europe to 1.7%. In the US, where there are signs of an upturn in construction activity, demand is forecast to rise by 2.9%,” it said.
