LONDON, Nov. 19 -- The global zinc surplus widened to 341,000 mt in the year to September, according to the latest statistics from the International Lead and Zinc Study Group (ILZSG).
The surplus compares with an excess of 25,000 mt for the corresponding period in 2008.
Refined zinc production in the year to September totaled 8.24 million mt, down almost 6% from a year previously despite a rise in Chinese production.
"This was due to cutbacks in a number of countries, including Belgium, Brazil, Canada, Germany, Japan, the Republic of Korea, Peru, Romania and the USA," ILZSG said.
World zinc mine production fell by almost 6% primarily due to reduced output in Australia, China, Poland, Peru and the USA.
During the first three quarters of the year, global usage totaled 7.91 million mt, 9.5% lower than the corresponding period of 2008.
Demand for zinc rose by more than 2% month-on-month to 976,100 mt in September, an increase of 42.7% on the low recorded in January.
Three-month zinc settled at USD 2,275.5/76/mt in the official session on the London Metal Exchange on Wednesday, up from USD 1,251/51.5/mt on the first day of trading in January.
Total reported inventory in January to September increased by 343,000 mt, including 159,000 mt that was delivered to the Chinese State Reserve Bureau. Stocks in LME-bonded warehouses totaled 449,375 mt on Wednesday, compared 254,525 mt at the start of the year.
(Source: Metal Bulletin)