UPDATE: ILZSG: Global Zinc Market In 178,000-Ton Surplus Jan-Apr

LONDON, Jun 15 -- The global refined zinc market was in surplus by 178,000 metric tons in the first four months of the year as increased production from the likes of China, India and Peru surpassed a lift in demand for the metal, the International Lead and Zinc Study Group said Wednesday.

In January to April, total production reached 4.271 million tons of refined zinc, while consumption was recorded at 4.093 million tons, it said. The gap was slightly larger than the 166,000-ton surplus in the same period last year.

In a monthly report, the ILZSG--an international body set up by the United Nations to ensure transparency in the markets--reported that world refined zinc metal output has risen by 3.9% compared with the year-earlier period. "This was mainly due to increases in China, India, and Peru that more than offset falls in Canada and Japan," the group said.

Despite lower demand in the U.S. and Japan, where consumption fell 5.4% and 7% respectively, world usage of refined zinc metal was up by 3.8%. This was attributed to a further rise in Chinese apparent demand of 7.3% and an increase in European demand of 6.8%.